Riot Blockchain is about to acquire a $650 million Texas data facility.
According to Cointelegraph, a cryptocurrency media outlet on the 8th (local time), Riot Blockchain will acquire a major data center owned by Northern Data AG, one of its rivals, for $650 million.
Riot blockchain is continuing its efforts to expand Bitcoin (BTC) mining. According to foreign media reports, the U.S. bitcoin mining company Riot Blockchain will take over Winston US, which is currently owned by Northern Data.
Through a press release on the 8th (Thursday), Riot Blockchain announced the purchase plan, including a cash payment of 80 million dollars. The remainder of the acquisition is financed by the sale of approximately 12% of the company’s shares to Northern Data.
Winston is known to operate the largest single Bitcoin mining facility in the United States. Winston’s Texas-based data center has a total capacity of 750 megawatts (MW), and it is reported that an additional 300 MW is currently underway.
When the transaction is finally completed, Riot Blockchain is expected to become the largest Bitcoin mining company in North America based on the operational capability indicator.
In the case of Riot blockchain, this acquisition of Winstone will be an opportunity to increase Bitcoin mining capabilities. According to Riot CEO Jason Ress, the path for Bitcoin miners is the process of increasing U.S. participation in the global BTC mining environment.
Northern Data stated in its own transaction announcement that the sale of Winstone to the Riot blockchain would not negatively impact interest, taxes, depreciation, and pre-depreciation profits.
According to the Northern Data release, the company’s profitable multi-site strategy means that all previous EBITDA guidelines for fiscal 2021 will remain unchanged. ( EBITDA:’Profit before tax and interest payment’ or’Operating profit before corporate tax interest depreciation expenses’)