Riot Blockchain (RIOT), one of the world’s largest bitcoin mining companies, is buying electrical equipment provider ESS Metron for $50 million, consisting of up to 715,41 Riot shares and $25 million in cash, according to a press release.
- Denver-based ESS Metron is a key supplier to Riot’s Whinstone, Texas, facility and provides “highly engineered, custom product offerings” that are used to deploy bitcoin mining operations at scale.
- Riot said the acquisition will help ensure the timely installation of its new miners as ESS Metron provides critical infrastructure.
- “Riot’s strategic position across the electrical supply chain is significantly enhanced as the company will benefit from ESS Metron’s existing relationships with leading electrical suppliers globally,” Riot CEO Jason Les said in the release.
- Riot also said that ESS Metron has helped it develop its customized immersion-cooling technology for its 200 megawatt expansion project.
- Riot shares were up 6.8% to $39.92 on Wednesday morning ET.
- On Nov. 3, Riot Blockchain increased its forecast for bitcoin mining computing power to 8.6 exahash per second (EH/s) from its previous estimate of 7.7 EH/s for next year. The increase doesn’t include any potential benefits from the use of its immersion-cooled technology.