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Riot acquisition price of Block Mining is ‘justified,’ improves its hash rate

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Analysts from H.C. Wainwright claim that Riot’s acquisition of Block Mining is a great move for the company and its hash rate.

Riot Platforms, Inc. has significantly enhanced its growth and operational capacity by acquiring Kentucky-based Block Mining, Inc. for $92.5 million.

The acquisition consists of $18.5 million in cash and $74 million in Riot common stock, with an additional earn-out consideration of up to $32.5 million contingent on achieving specific milestones. 

“With a combined 60 MW of existing developed capacity, and a pipeline to rapidly scale to over 300 MW, this acquisition expands our operations and further enhances our path towards our growth target of 100 EH/s,” Riot Platforms CEO Jason Les said in a release.

Despite the high price tag, analysts at H.C. Wainwright believe the acquisition cost is justified due to BMI’s substantial capacity and expansion potential.

Riot is expanding its capacity and operations

Block Mining operates 60 MW across two data centers in Kentucky, adding 1 EH/s to Riot’s portfolio. The Commerce Drive data center in Paducah, KY, operates 35 MW, while the Blue Steel site in Calvert City, KY, utilizes 7 MW with an 18 MW vacancy.

Riot plans to expand these capacities significantly, targeting 110 MW by the end of 2024 and 305 MW by the end of 2025. This expansion will potentially increase Riot’s hash rate to 36.3 EH/s by the end of 2024 and 56.6 EH/s by the end of 2025.

Riot’s long-term growth and diversification

This acquisition aligns with Riot’s long-term goal of reaching 100 EH/s. Additionally, it diversifies Riot’s geographic footprint beyond Texas, where all its mining operations were previously located.

Analysts see this as a prudent use of capital, enhancing Riot’s operational efficiency and reducing geographic risk.

Riot’s financial risks

Post-acquisition, Riot expects to spend $345 million in capital expenditures to fully develop BMI’s sites. Despite the substantial investment, Riot’s strong liquidity position, with $639 million in cash and significant Bitcoin holdings, supports this expansion. 

Analysts have raised Riot’s 2024 revenue estimate to $344.2 million and adjusted EBITDA estimate to $321.7 million, reflecting confidence in the acquisition’s potential to drive growth and profitability.



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All-Time High

Why Bitcoin Will Soar Above Its Fresh Record: Van Straten

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Even after breaking through $77,000 for the first time, bitcoin’s price looks very likely to keep soaring, CoinDesk senior analyst James Van Straten argues.



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Bitcoin Realized Cap At All-Time High As Price Hits $77,000 For The First Time

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Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.



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Bitcoin (BTC) Price Tops $77K Record as Muted Funding Rates Suggest Crypto Rally Has More Room to Run

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While crypto assets booked double-digit gains during this week, with BTC sitting at record highs, funding rates for perpetual swaps on crypto exchanges are much closer to neutral levels than the market top in early March, CoinGlass data shows. Funding rate refers to the amount long traders pay shorts to take the opposite side of a trade. When funding rates are negative, shorts pay the fee to longs, as this relationship often occurs during bearish periods.



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