The electrical equipment provider is key to Riot’s bitcoin mining operations and will enable timely installation of miners after the transaction.
Riot Blockchain has bought the electrical equipment provider ESS Metron.The deal is valued at $50 million, paid in 715,413 Riot common stock shares and $25 million in cash.Denver-based ESS Metron is a crucial supplier to Riot’s Whinstone, Texas, facility.
Bitcoin miner Riot Blockchain has acquired electrical equipment solutions provider ESS Metron, according to a press release published Wednesday. The transaction is valued at about $50 million, and the payment will be made in 715,413 shares of Riot common stock and $25 million in cash.
“The successful acquisition of ESS Metron marks yet another milestone in establishing Riot as a leader in Bitcoin mining,” Riot CEO Jason Les said in the release. “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.”
Denver-based ESS Metron is a key supplier to Riot’s Whinstone, Texas, facility, being “highly complementary” to Riot and its ongoing expansion towards 700 megawatts (MW). The electrical equipment maker has 60 years of experience and provides “highly engineered, custom product offerings mission-critical” to deploy bitcoin mining operations at scale.
“We are excited to continue the growth of ESS Metron’s business by joining Riot Blockchain,” said Stephen Howell, newly promoted CEO of ESS Metron. “We look forward to continuing to provide best-in-class service to our growing customer base and actively collaborating with Riot in its ongoing expansion efforts.”
The closer integration of the supplier into Riot’s operations will allow the bitcoin miner to ensure the timely installation of new rigs. However, the electric equipment provider is expected to keep operating as an independent subsidiary of Riot and retain its entire employee team.
XMS Capital Partners LLC served as Riot’s financial advisor, and Sidley Austin LLP served as its legal advisor.
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