Riot Platforms has finalized a strategic agreement to acquire key assets from Rhodium Encore LLC, marking a significant expansion of its Bitcoin mining infrastructure. The non-binding term sheet, announced on March 21, 2025, outlines Riot’s proposed acquisition of Rhodium’s assets at the Rockdale Facility in Texas for $185 million. The deal includes $129.9 million in cash, a $6.1 million return of Rhodium’s power security deposit, and $49 million in Riot shares. Upon closing, Riot will regain full control of the Rockdale Facility, adding 125 MW of power capacity to its self-mining operations.
Rhodium, which filed for Chapter 11 bankruptcy in September 2024, faced financial struggles after failing to repay loan obligations. Its Rockdale Facility, with 1.1 EH/s of energized mining capacity as of late 2022, became a focal point during restructuring. The acquisition allows Riot to integrate Rhodium’s existing infrastructure—including ASIC miners and power agreements—while dismissing all ongoing litigation between the parties.
This move aligns with Riot’s broader strategy to consolidate its position in energy-rich markets. Earlier in 2024, the company acquired Block Mining for $92.5 million, expanding its footprint into Kentucky and adding 1 EH/s to its hash rate. The Rhodium deal further diversifies Riot’s operational reach, leveraging Texas’s energy resources to offset challenges posed by Bitcoin’s post-halving economics.
Riot’s aggressive expansion comes amid pressure from activist investor Starboard Value, which urged the company to repurpose mining facilities for hyperscale data centers amid growing AI sector demand. Despite a $154.4 million net loss in Q3 2024, Riot continues deploying capital from convertible note offerings and cash reserves, including a $510 million Bitcoin purchase in December that increased its holdings to 16,728 BTC.
Pending court approval, Riot expects to finalize the Rhodium transaction by mid-2025, solidifying its vertically integrated mining model. The acquisition positions Riot to capitalize on emerging opportunities in both cryptocurrency and high-performance computing sectors.
Sources:
https://www.prnewswire.com/news-releases/riot-platforms-announces-entry-into-non-binding-term-sheet-to-acquire-certain-assets-of-rhodium-and-settlement-agreement-302408360.html
https://theminermag.com/news/2024-09-23/rhodium-bitcoin-mining-sale-temple/
https://www.financemagnates.com/cryptocurrency/3rd-largest-bitcoin-miner-on-wall-street-acquires-crypto-competitor-for-93-million/
https://www.theblock.co/post/330808/riot-platforms-increases-its-bitcoin-holdings-by-over-5000-btc
