One of the largest bitcoin miners, Riot Blockchain (RIOT), is buying electrical equipment provider ESS Metron for $50 million, consisting of up to 715,413 shares of Riot’s common stock and $25 million in cash, according to a press release.
- Denver, Colorado-based ESS Metron is a key supplier to Riot’s Whinstone, Texas facility and provides “highly engineered, custom product offerings” that are used to deploy bitcoin mining operations at scale. ESS Metron is also a leading supplier to numerous third-party clients.
- Riot said the acquisition helps with ensuring the timely installation of its new miners by ensuring the supply of mission-critical infrastructure.
- “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,” said Jason Les, CEO of Riot.
- Riot also highlighted that ESS Metron has played a critical role in developing Riot’s customized immersion-cooling technology for its 200 megawatt expansion project.
- Riot shares were rising 6.8% to $39.92 in morning ET trading on Wednesday.
- On Nov. 3, Riot Blockchain increased its forecast for bitcoin mining computing power guidance to 8.6 exahash per second (EH/s) from previous guidance of 7.7 EH/s for next year. The increase doesn’t include any potential benefits from the use of its immersion-cooled technology.