One of the leading cryptocurrency mining companies in the US – Riot Blockchain – acquired the electrical equipment provider – Ferrie Franzmann Industries (known as ESS Metron) for $50 million. As a result, the latter will provide a steady infrastructure supply for Riot’s new mining machines.
The news was announced in a recent press release by the US Securities and Exchange Commission (SEC). The total amount of the transaction equals $50 million as the bitcoin mining firm paid $25 million in cash, funded with capital from its balance sheet. The other half consisted of up to 715,413 shares of Riot common stock.
The mining company expects to benefit from the deal by utilizing ESS Metron’s “highly engineered electrical equipment solutions” as Riot plans to expand to 700 MW. Previously, ESS Metron helped Riot develop customized immersion-cooling technology for its 200 MW expansion project.
Jason Les – Chief Executive Officer at Riot Blockchain – described the acquisition as “another milestone in establishing” his firm as a leader in its field.
“Riot’s strategic position across the electrical supply chain is significantly enhanced as the company will benefit from ESS Metron’s existing relationships with leading electrical suppliers globally,” he added.
Stephen Howell – CEO of ESS Metron – asserted that his organization will keep providing “best-in-class service” to its growing customer base and aid Riot Blockchain in its expansion efforts.
The American bitcoin mining company is one of the giants in its sector and is even listed on Nasdaq under the ticker symbol “RIOT.” A few months ago, it purchased Whinstone US – the owner-operator of North America’s single largest BTC mining and hosting facility.
Riot’s Previous Purchases
The purchase was worth at least $138 million and was part of the firm’s plans to boost its bitcoin mining hashrate, aiming at 7.7 EH per second.
“By nearly doubling its planned hash rate capacity, Riot continues to take great strides forward in growing both the Company’s and the United States’ share of the global network hash rate,” – said Megan Brooks, COO of Riot Blockchain.