Riot Blockchain acquires Block Mining for $92.5 million, mining company's market value surges significantly within two weeks

The mining company Riot Platforms announced yesterday, on the 23rd, that it will acquire another Bitcoin mining company, Block Mining, for $92.5 million, bringing it closer to its target of 110 megawatts (MW) of mining operational capacity by the end of 2024. The market value of mining companies has also increased by 10% to 20% over the past two weeks.

Riot Platforms Acquires Block Mining for $90 Million

Riot has announced the acquisition of Bitcoin mining company Block Mining for $92.5 million, which is expected to immediately increase its operational capacity by 60 megawatts.

Reportedly, Riot paid $18.5 million in cash and $74 million in Riot common stock:

We plan to further expand Block Mining's two sites in Kentucky with the goal of expanding to 110 megawatts of self-mining operational capacity by the end of this year.

Additionally, "This will bring Riot's total potential power capacity to 2 gigawatts (GW)."

Riot emphasizes that this acquisition will immediately increase the company's current mining hash rate by 1 EH/s and is expected to reach 16 EH/s by the end of 2025.

Just last month, Riot attempted a hostile takeover of another mining company, Bitfarms, through increased shareholdings, but the two parties have not yet reached a consensus.

Mining Company Acquisition Continues! Riot Counters Bitfarms, Continues to Increase Stake to 14%: No Communication between the Two Parties

Riot CEO: Hash Rate Target is 100 EH/s

Riot CEO Jason Les stated in a release that the acquisition allows the company to diversify operations nationwide and accelerate expansion in Kentucky:

As a means to achieve the growth from the current 60 megawatts capacity to the 300 megawatts target, this acquisition further strengthens our potential to achieve the 100 EH/s hash rate goal by the end of 2027.

However, the acquisition news does not seem to have had a positive impact on its stock price, with Riot RIOT shares falling 5.31% at Tuesday's close, down 25.08% year-to-date.

Mining Company Market Values Surge in Two Weeks

Over the past two weeks, the market values and stock prices of major mining companies have seen significant rebounds from the relatively low point on July 10, with gains of over double-digit percentages.

Marathon Digital MARA

Firstly, Marathon Digital leads the way with a market value growth from $5.34 billion to $7.56 billion, a roughly 41.5% increase, and despite falling to $6.99 billion, still shows a notable 30.8% performance.

Riot Platforms RIOT

Next, despite Riot's poor stock performance this year, its market value has risen from $2.64 billion to $3.47 billion in the past two weeks, showing a growth of around 31.4%.

Hut 8 HUT

Lastly, Hut 8 Mining's market value has grown from $1.38 billion to $1.76 billion, an increase of approximately 27.5%.

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