Riot Platforms Inc., a leader in the Bitcoin mining industry, has announced the closing of its acquisition of specific assets from Rhodium Encore LLC at its Rockdale Facility. The transaction, valued at $185.0 million, includes $129.9 million in cash, a $6.1 million return of Rhodium's power security deposit, and $49.0 million in Riot common stock. This acquisition allows Riot to terminate unprofitable legacy hosting contracts with Rhodium, which had previously resulted in a gross loss of approximately $15 million in FY 2024. As a result, Riot now assumes Rhodium's 125 MW of power capacity, which will be fully utilized by Riot and its subsidiaries. Additionally, Riot has acquired all tangible Rhodium property, including ASIC miners, at the Rockdale Facility. This move marks a significant step for Riot, expanding its capacity and reducing future litigation expenses.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.