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Riot Blockchain Stock Is Trading Higher On Acquiring Whinstone For $651M In Cash And Stock Deal

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Anusuya Lahiri
·1 min read
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  • Riot Blockchain Inc (NASDAQ: RIOT) agreed to acquire Whinstone US, Inc, including its assets and operations from Northern Data AG (OTC: NDTAF).

  • The purchase price included $80 million cash plus a fixed 11.8 million Riot stock, equivalent to $651 million based on Riot’s last closing price of $48.37.

  • Whinstone is the owner and operator of North America’s major Bitcoin hosting facility, with 300 MW in developed capacity and a long-term power purchase agreement. Whinstone’s facility can be expanded by an additional 450 MW.

  • The acquisition will diversify Riot’s revenues, consolidate Riot’s position in the Bitcoin mining and hosting business, and create material financial and operational synergies.

  • Northern Data will still own a 12% stake in Riot under the arrangement.

  • Riot held $235 million in cash and cryptocurrencies as of Dec. 31, 2020.

  • Price action: RIOT shares traded higher by 5.66% at $51.11 in the premarket session on the last check Thursday.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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