Riot Blockchain Inc. has announced the acquisition of America’s Bitcoin mining facility, Whinstone US.
Based on the announcement, the total consideration paid for the acquisition was $80 million in cash and 11.8 million shares of Riot common stock. This is coming when Bitcoin (BTC/USD) mining has been receiving some heat lately due to its perceived high energy usage. However, Riot Bitcoin’s Chief Executive Officer, Jason Les, has something else to say about that.
Correcting the wrong notion about Bitcoin mining
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Les stated that he has been involved with Bitcoin for a long time. While speaking on CNBC regarding the feasibility of Bitcoin, he said he is a “believer in the long-term utility of Bitcoin.”
He faulted people’s claims that Bitcoin mining uses more fossil fuel that could be dangerous to environmental sustenance. He argued that Bitcoin miners use renewable energy more than any other major industry or commercial application.
Les and other Bitcoin mining chiefs had a long discussion with Elon Musk and Michael Saylor, founders of Tesla and Microstrategy respectively. The meeting centered on what they are doing as an industry to correct the wrong notion people have about Bitcoin mining. He said more miners will talk about their energy consumption to “set the record straight”.
Further development of mining facilities
After the acquisition, Riot Blockchain still wants to develop more facilities at Whinstone to take it to its current capacity of 750 MW.
According to Riot, the increased capacity will help the company send its mining orders to Whinstone. This will allow Rio to take advantage of significant synergies, including lowering operational costs and direct energy costs.
With this acquisition, Riot Blockchain now owns the largest Bitcoin mining facility in the USA. The company’s main business goal is to mine Bitcoin and host Bitcoin mining equipment for clients.