CEO from Riot Blockchain: Company is one of Mining the best positioned acquirer” of space travel

CEO from Riot Blockchain: Company is one of Mining the best positioned acquirer” of space travel

riot blockchain is one of the “best positioned buyers” in the mining area, said the company's CEO-a segment that many say that it is prepared for consolidation during the crypto winter.

But Riots CEO Jason Les said that the company does not necessarily look for size in potential deals because it is busy realizing its own expansion.

The company based in Colorado had 55,728 active miners with a hash installment capacity of 5.6 exahashes per second (EH/S) on September 30. 12.5 EH/S in the first quarter of 2023.

"It's a sprint," said Les. "It is an effort of all hands on deck to build this infrastructure and use these miners ... to increase this hash rate as soon as possible."

mining M&A come?

riot blockchain is one of the largest listed miners in an area that has grown quickly, but now has to overcome a downturn that has cut access to capital for many.

At the end of the second quarter, the company had $ 270 million in cash. Although Les refused to comment on the company's current cash stocks - the company will announce its results for the third quarter next month - Riot Blockchain held 6,775 bitcoins at the end of September.

"If we have the opportunity to acquire a hash rate at a very attractive price, it will be interesting," he said to block works.

"It is strategically difficult to see something to be added. It just makes a big deal bigger, so at what price we can get it and what will that contribute to our financial results," he added.

Other managers of larger mining companies have expressed concerns to acquire in the current market environment. Fred Thiel, CEO from Marathon Digital, told Blockworks last week that it is smarter for large Bitcoin miners in many cases.

takeovers are not foreign to Riot Blockchain. In May 2021, the company completed the takeover of the 100 hectare Bitcoin mining location from Whinstone in Rockdale, Texas. In December there was known to buy ESS Metron, a designer and manufacturer of electrical appliances that the company said it would help him get a critical infrastructure to install miner faster.

les pointed out the latter deal as a "big leap" in the efforts of the company to integrate vertically.

"There is always the potential for this type of takeovers-a company that supports the vertical integration strategy that may not be specifically in Bitcoin mining itself," he added.

As for the area in the broader sense, Les said that he expects mergers and acquisitions among smaller mining companies that had grown too quickly during the bull market last year. Other mining companies, he added, will go bankrupt or try to go to the private sector to reduce the complexity of their business.

"Consolidation for consolidation will make no sense," said Riot Blockchain's CEO. "There must be a synergetic advantage that comes on the table for the two companies, so I'm not sure how these figures get together on the chess board."

A focus on building in Texas

Although Thiel said that Marathon is digitally potential options for a global expansion, since the mining in Texas is becoming increasingly overcrowded, Les said that Riot Blockchain would continue to focus on expansion in the state.

The relationships of the company in Texas helped him to secure a location that is supposed to accommodate a capacity of 1 gigawatt in Navarro County for about an hour outside of Dallas, said Les - a deal that was announced in April.

"Not deep in the west of Texas ... but in an area that has a community with which we could work with and which is only two hours away from our existing facility in Rockdale," said Les. "We have many advantages when we keep things relatively locally, move people and resources between locations and use relationships."

The deregulated electricity market is also very attractive in Texas, the board added. The Electric Reliability Council of Texas (ERCOT) operates more than 1,000 power generation units that make up about 90 % of the state's power load.

les said that the closer relationships between Bitcoin miners and energy networks will be of crucial importance for space, since the mining can monetize energy that would otherwise be wasted.

riot took part in the Four Coincident Peak (4CP) program from Ercot, which enables companies to reduce energy consumption in exchange for savings in electricity bill.

"Bitcoin mining has a real chance of becoming part of our energy network everywhere," said Les. "This will improve the energy network and demonstrate the strength and resilience as well as the added value of Bitcoin mining."

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The CEO of Post Riot Blockchain: Company is one of Mining Space’s 'Best-Positioned Acquirers' is not a financial advice.