Riot Platforms has strategically strengthened its position in the Bitcoin mining sector through a $185 million acquisition of key assets from Rhodium, a move that consolidates infrastructure and expands self-mining capabilities. The deal, finalized through Riot’s subsidiary Whinstone US, includes $129.9 million in cash, a $6.1 million power deposit rebate, and $49 million in Riot stock. Rhodium transferred ownership of its Rockdale Facility assets, including ASIC miners, and vacated the premises within three business days post-closure. This acquisition adds 125 megawatts of power capacity to Riot’s operations, enhancing its ability to scale self-mining activities at the Texas-based site.
The transaction resolves ongoing litigation between the two firms and transitions Rhodium’s former hybrid hosting model into Riot’s fully self-owned operations. Analysts highlight the strategic value of securing additional power infrastructure, which is increasingly critical in the competitive Bitcoin mining landscape. Despite halting its 600 MW Phase II Bitcoin mining expansion at the Corsicana Facility to explore AI and high-performance computing opportunities, Riot offset potential growth limitations by absorbing Rhodium’s assets. The company now projects a year-end hash rate of 38.4 EH/s, slightly below earlier estimates but bolstered by the Rockdale acquisition.
Rhodium’s decision to sell followed its September 2024 Chapter 11 bankruptcy filing, prompted by financial distress and unmet loan obligations. Earlier bids for its Temple site infrastructure reached $105 million, but Riot’s acquisition of Rockdale assets provided a more comprehensive solution. The deal aligns with Riot’s broader strategy to diversify operations while maintaining dominance in Bitcoin mining—evident in its record 2024 revenues of $376.7 million despite rising production costs and post-halving challenges.
Industry observers note the acquisition underscores a trend of consolidation as miners seek operational efficiencies and vertical integration. By absorbing Rhodium’s infrastructure, Riot gains full control over its expanded mining fleet, eliminates third-party hosting conflicts, and positions itself to capitalize on Bitcoin’s price volatility with a treasury holding exceeding 17,722 BTC.
Sources:
https://www.bitget.com/news/detail/12560604657508
https://www.ainvest.com/news/riot-blockchain-acquires-rhodium-185m-boosts-mining-capacity-125mw-2503/
Strategic Riot Platforms Acquisition: A Power Move in Bitcoin Mining with Rhodium Assets
