Riot Platforms announced a landmark $185 million acquisition of key assets from Rhodium, marking a strategic expansion in the Bitcoin mining sector. The deal, finalized through Riot’s subsidiary Whinstone US, includes $129.9 million in cash, a $6.1 million power deposit return, and $49 million in Riot stock. In exchange, Rhodium transferred ownership of all physical assets at its Rockdale Facility, including ASIC miners, and agreed to vacate the premises within three business days. This transaction grants Riot full control of Rhodium’s 125 MW power capacity and existing infrastructure, enabling immediate self-mining operations at the site.
The acquisition strengthens Riot’s position as a leading vertically integrated miner by consolidating its Rockdale operations. By reclaiming power capacity previously allocated to Rhodium, Riot eliminates hosting-client conflicts and gains complete operational autonomy. Analysts highlight the strategic value of securing energy resources, which often outweighs mining hardware in long-term profitability. The deal also resolves ongoing litigation between the two firms, streamlining Riot’s legal portfolio.
This move follows Riot’s aggressive growth strategy, including its 2024 acquisition of Block Mining for $92.5 million, which expanded its geographic footprint into Kentucky. The Rhodium acquisition further diversifies Riot’s energy market access, adding capacity in regions served by the Tennessee Valley Authority. Industry observers note the transaction’s timing aligns with sector-wide consolidation efforts as miners seek economies of scale post-Bitcoin halving.
Rhodium’s bankruptcy filing in late 2024 and subsequent court-approved asset sales provided Riot an opportunity to acquire critical infrastructure at competitive terms. The Texas-based miner now anticipates scaling its hash rate potential while optimizing power costs, positioning itself to capitalize on evolving market conditions. With this acquisition, Riot solidifies its infrastructure advantages ahead of anticipated growth in Bitcoin’s adoption and valuation.
Sources:
https://www.bitget.com/news/detail/12560604657508
https://markets.businessinsider.com/news/stocks/riot-platforms-enters-non-binding-term-sheet-to-buy-certain-assets-of-rhodium-1034504414
https://www.ainvest.com/news/riot-blockchain-acquires-rhodium-185m-boosts-mining-capacity-125mw-2503/
https://theminermag.com/news/2024-09-23/rhodium-bitcoin-mining-sale-temple/
