Riot Platforms has finalized a landmark $185 million acquisition of key assets from Rhodium Encore LLC, marking a strategic expansion of its Bitcoin mining operations. The deal, executed through Riot’s subsidiary Whinstone, includes $129.9 million in cash, a $6.1 million rebate on Rhodium’s power deposit, and $49 million in Riot shares. In exchange, Rhodium will transfer ownership of all tangible assets at its Rockdale, Texas mining facility, including its ASIC mining rigs, while both parties agreed to withdraw existing litigation and waive future claims unrelated to the transaction.
The acquisition grants Riot access to 125 MW of power capacity at the Rockdale site, significantly boosting its self-mining capabilities. This move consolidates Riot’s operational control over the facility, transitioning it from a hybrid hosting model to a fully vertically integrated mining operation. Rhodium’s assets add critical infrastructure to Riot’s portfolio, enabling scalability in an industry where power access often outweighs hardware value.
Rhodium’s financial struggles preceded the deal, with the company filing for Chapter 11 bankruptcy in August 2024 amid $100 million in debts. It previously sold its Temple, Texas mining site for $40.6 million in December 2024 but retained most equipment at Rockdale. The acquisition by Riot resolves Rhodium’s protracted legal and financial challenges while allowing Riot to absorb operational infrastructure at a pivotal time.
Analysts highlight the strategic alignment of the deal, emphasizing cost synergies and expanded mining capacity. Integrating Rhodium’s assets could streamline Riot’s power procurement and facility management, enhancing profitability in a volatile Bitcoin market. However, risks remain, including operational complexities in merging infrastructure and potential regulatory shifts impacting crypto mining.
The transaction underscores Riot’s aggressive growth strategy following its 2024 acquisition of Kentucky-based Block Mining for $92.5 million. By securing Rhodium’s assets, Riot reinforces its position as a leading Bitcoin miner while signaling broader industry consolidation.
Sources:
https://www.panewslab.com/en/articledetails/l2cqgvwg.html
https://www.ainvest.com/news/riot-blockchain-acquires-rhodium-185m-boosts-mining-capacity-125mw-2503/
https://www.binance.com/en/square/post/03-22-2025-riot-platforms-subsidiary-whinstone-to-acquire-rhodium-assets-in-rockdale-21870907070290
https://www.bitget.com/news/detail/12560604657508
Strategic Riot Platforms Acquisition: A Power Move in Bitcoin Mining with Rhodium Assets
