Nasdaq-listed Bitcoin mining firm Riot Platforms has entered into a non-binding agreement to acquire key assets from Rhodium Enterprises, marking a strategic expansion of its mining infrastructure. Under the terms outlined, Riot’s subsidiary Whinstone US will pay $185 million to acquire Rhodium’s physical assets at the Rockdale facility in Texas, including all ASIC miners and 125 MW of power capacity. The transaction comprises $129.9 million in cash, a $6.1 million refund of Rhodium’s power deposit, and $49 million in Riot shares priced based on a 10-day volume-weighted average prior to closing.
The deal resolves ongoing litigation between the two companies, with both parties agreeing to dismiss all lawsuits and appeals upon finalization. Riot will assume full control of Rhodium’s operational footprint at Rockdale, enabling the company to allocate the facility’s entire power load to self-mining activities. Rhodium must vacate the site within three business days of closing, transferring ownership of all on-site equipment.
This acquisition follows Rhodium’s Chapter 11 bankruptcy filing in August 2024, triggered by loan defaults and a deteriorating relationship with Riot. Earlier in December 2024, Rhodium sold its Temple, Texas mining site for $40.6 million to repay creditors, including a $16 million debt to Galaxy Digital. The company faced lawsuits from investors alleging mismanagement by co-founders, prompting the resignation of co-CEO Nathan Nichols.
Riot’s move consolidates its position in Texas, where it already operates mining facilities in Rockdale and Kentucky. The transaction remains subject to bankruptcy court approval under Section 363 of the Bankruptcy Code and finalization of binding agreements. If approved, Riot expects to immediately integrate Rhodium’s Rockdale assets, enhancing its structural efficiency and operational scale.
Sources:
https://www.chaincatcher.com/en/article/2173723
https://theminermag.com/news/2024-12-29/rhodium-temple-bitcoin-mine-ceo/
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
