• Riot Blockchain, a Bitcoin miner, paid $50 million for ESS Metron

  • Riot Blockchain, one of the leading cryptocurrency mining companies in the United States, paid $50 million for the electrical equipment provider Ferrie Franzmann Industries (known as ESS Metron). As a result, the latter will ensure a steady supply of infrastructure for Riot’s new mining machines.

    Expansion of Riot

    The US Securities and Exchange Commission announced the news in a recent press release (SEC). The total transaction value is $50 million, with the bitcoin mining company paying $25 million in cash and funding the remainder with capital from its balance sheet. The remaining half was made up of up to 715,413 shares of Riot common stock.

    As Riot plans to expand to 700 MW, the mining company expects to benefit from the agreement by utilizing ESS Metron’s “highly engineered electrical equipment solutions.” ESS Metron previously assisted Riot in developing customized immersion-cooling technology for its 200 MW expansion project.

    Riot Blockchain CEO Jason Les described the acquisition as “another milestone in establishing” his company as a leader in its field.

    “Riot’s strategic position across the electrical supply chain has significantly improved as a result of ESS Metron’s existing relationships with leading electrical suppliers globally,” he added.

    Stephen Howell, CEO of ESS Metron, stated that his company will continue to provide “best-in-class service” to its growing customer base and will assist Riot Blockchain in its expansion efforts.

    The American bitcoin mining company is one of the industry’s behemoths, and it’s even traded on the Nasdaq under the ticker symbol “RIOT.” It purchased Whinstone US a few months ago, the owner-operator of North America’s single largest BTC mining and hosting facility.

    Previous Purchases by Riot

    Riot Blockchain increased its mining capacity earlier this year by purchasing 42,000 Bitmain S19 Antminers (a Hong Kong-based cryptocurrency mining products manufacturer).

    The purchase was at least $138 million in value and was part of the company’s plans to increase its bitcoin mining hashrate to 7.7 EH per second.

    “By nearly doubling its planned hash rate capacity, Riot continues to make significant progress in increasing both the Company’s and the United States’ share of the global network hash rate,” said Megan Brooks, Riot Blockchain’s COO.

    What's your reaction?