Riot Blockchain Completes Acquisition of Whinstone US, Creating Leading North American Bitcoin Mining Company
May 26 2021 - 5:22PM
Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot”, “Riot
Blockchain” or the “Company") today announced that it has
completed its previously announced acquisition of Whinstone US
(“Whinstone”) from Northern Data (XETRA: NB2). The total
consideration paid in the transaction was 11.8 million shares of
Riot common stock and $80 million in cash, funded with cash on the
balance sheet.
“The successful acquisition of Whinstone marks the most
significant milestone in Riot’s history, and firmly establishes the
Company as a leading Bitcoin mining platform,” said Jason Les, CEO
of Riot. “With Whinstone’s preeminent infrastructure and
best-in-class construction, development, and operations
organization, Riot is extremely well-positioned to increase the
scale and scope of its operations. We welcome the talented
Whinstone employees to the Riot family, and I look forward to
leading our combined team as we jointly execute upon the Company’s
mission to become one of the most relevant and significant
companies supporting the Bitcoin network and greater Bitcoin
ecosystem.”
“We are incredibly proud of the Whinstone team and sincerely
appreciative of the Rockdale community that has supported us since
we first broke ground in early 2020,” said Chad Harris, CEO of
Whinstone. “We look forward to partnering with the Riot team
to advance our pursuit of creating America’s leading Bitcoin mining
company.”
Riot plans to immediately commence further development of
additional facilities at Whinstone in order to rapidly bring the
property to its current capacity of 750 MW. With this
capacity expansion, the Company’s intention is to send its future
committed miner order deliveries to Whinstone, which will allow
Riot to capture significant synergies, including lower direct
energy costs and operational costs.
Commencing in early 2020, the Whinstone team has successfully
built the largest Bitcoin hosting facility in North America, as
measured by developed capacity. Whinstone’s comprehensive
energy management strategy delivers best-in-class net energy costs
of approximately 2.5 cents per kWh utilizing cutting-edge
technology and comprehensive analytics to deliver industry-leading
low cost, reliable and responsive power.
XMS Capital Partners, LLC served as exclusive financial advisor
and Sidley Austin LLP served as legal advisor to Riot.
Riot will host a live conference call at 8:30 am ET on May 27,
2021 to discuss additional details about the transaction. Further
details may be found at http://www.tinyurl.com/RiotIR. The
presentation will also be available on the Riot website.
About Riot Blockchain, Inc.
Riot Blockchain (NASDAQ: RIOT) focuses on mining Bitcoin and
hosting Bitcoin mining equipment for clients. The Company is
expanding and upgrading its mining operations by securing the most
energy efficient miners currently available. Riot is headquartered
in Castle Rock, Colorado, and the Company’s current mining facility
operates out of Rockdale, TX. The Company also has mining equipment
operating in upstate New York under a co-location hosting agreement
with Coinmint. For more information, visit
www.RiotBlockchain.com.
Safe Harbor
The information provided in this press release may include
forward-looking statements within the meaning of the federal
securities laws, including as to the effects of the acquisition by
the Company of Whinstone and the future financial performance and
operations of the Company and Whinstone. Because such statements
are subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Words such as "anticipates," “believes,” "plans,"
"expects," "intends," "will," "potential," "hope" and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are based upon current expectations of
the Company and involve assumptions that may never materialize or
may prove to be incorrect. Actual results and the timing of events
could differ materially from those anticipated in such
forward-looking statements as a result of various risks and
uncertainties. These forward-looking statements may include, but
are not limited to, statements about the benefits of the
acquisition of Whinstone, including financial and operating
results, and the Company’s plans, objectives, expectations and
intentions. Among the risks and uncertainties that could cause
actual results to differ from those expressed in forward-looking
statements are: (1) the integration of the businesses of the
Company and Whinstone may not be successful, or such integration
may take longer or be more difficult, time-consuming or costly to
accomplish than anticipated; and (2) failure to otherwise realize
anticipated efficiencies and strategic and financial benefits from
the acquisition of Whinstone. Detailed information regarding other
factors that may cause actual results to differ materially from
those expressed or implied by statements in this press release may
be found in the Company's filings with the U.S. Securities and
Exchange Commission (the “SEC”), including in the sections entitled
"Risk Factors" and “Cautionary Note Regarding Forward-Looking
Statements” of the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2020, which was filed with the SEC
on March 31, 2021 and subsequently amended in a filing with the SEC
on April 30, 2021, and the Company’s Quarterly Report on Form 10-Q
for the fiscal quarter ended March 31, 2021, which was filed with
the SEC on May 17, 2021, and in the additional risk factors set
forth in the Company’s Current Report on Form 8-K filed with the
SEC on May 26, 2021, copies of which may be obtained from the SEC's
website at www.sec.gov. All forward-looking statements included in
this press release are made only as of the date of this press
release, and the Company does not undertake any obligation to
publicly update or correct any forward-looking statements to
reflect events or circumstances that subsequently occur, or of
which the Company hereafter becomes aware, except as required by
law.
PR Contact
Riot Blockchain, Inc.
PR@riotblockchain.com
Investor Contact - Phil McPherson
Riot Blockchain, Inc.
303-794-2000 ext. 110
IR@riotblockchain.com
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