Riot Blockchain Stock Is Trading Higher On Acquiring Whinstone For $651M In Cash And Stock Deal

Riot Blockchain Inc (NASDAQ: RIOT) agreed to acquire Whinstone US, Inc, including its assets and operations from Northern Data AG (OTC:NDTAF).
The purchase price included $80 million cash plus a fixed 11.8 million Riot stock, equivalent to $651 million based on Riot’s last closing price of $48.37.
Whinstone is the owner and operator of North America’s major Bitcoin hosting facility, with 300 MW in developed capacity and a long-term power purchase agreement. Whinstone’s facility can be expanded by an additional 450 MW.
The acquisition will diversify Riot’s revenues, consolidate Riot’s position in the Bitcoin mining and hosting business, and create material financial and operational synergies.
Northern Data will still own a 12% stake in Riot under the arrangement.
Riot held $235 million in cash and cryptocurrencies as of Dec. 31, 2020.
Price action: RIOT shares traded higher by 5.66% at $51.11 in the premarket session on the last check Thursday.