Citadel Rock, CO, Dec. 01, 2021 (GLOBE NEWSWIRE) — Riot Blockchain, Inc. (NASDAQ: RIOT) (“Riot”, “Riot Blockchain” or the “Firm”) at the moment introduced that it has acquired Ferrie Franzmann Industries, LLC (d/b/a ESS Metron) (“ESS Metron”). The overall consideration payable within the transaction is valued at roughly $50 million, consisting of as much as 715,413 shares of Riot widespread inventory and $25 million in money, funded with money on the steadiness sheet.
- ESS Metron is a pacesetter with over sixty years of expertise in designing and producing extremely engineered electrical gear options, lots of that are mission-critical to efficiently deploying Bitcoin mining operations at scale.
- Acquisition assists in making certain Riot’s well timed miner installations by de-risking procurement of mission-critical infrastructure.
- Acquisition enhances Riot’s aggressive place throughout {the electrical} provide chain, as ESS Metron can be a number one provider to quite a few third-party purchasers.
- Transaction valued at roughly $50 million, $25 million payable in money, and the rest in issuance of as much as 715,413 shares of Riot’s widespread inventory.
The acquisition of ESS Metron, at present a key provider to Riot’s Whinstone facility, is extremely complementary to Riot and its ongoing infrastructure growth to 700 MW. ESS Metron gives extremely engineered, customized product choices mission-critical to Bitcoin mining infrastructure and considerably improves Riot’s capability to enhance its inner engineering capabilities. ESS Metron’s engineering proficiency has been a vital part in creating Riot’s personalized immersion-cooling expertise for its beforehand introduced 200 MW immersion-cooling growth venture.
“The profitable acquisition of ESS Metron marks yet one more milestone in establishing Riot as a pacesetter in Bitcoin mining,” mentioned Jason Les, CEO of Riot. “Riot’s strategic place throughout {the electrical} provide chain is considerably enhanced because the Firm will profit from ESS Metron’s current relationships with main electrical suppliers globally. As well as, Riot will proceed its fast-tracked growth venture because the Firm advantages from internalizing ESS Metron’s engineering and trade experience. We’re thrilled to welcome the gifted ESS Metron staff to the Riot household and sit up for rising our future collectively.”
“We’re excited to proceed the expansion of ESS Metron’s enterprise by becoming a member of Riot Blockchain,” mentioned Stephen Howell, newly promoted CEO of ESS Metron. “We sit up for persevering with to supply best-in-class service to our rising buyer base and actively collaborating with Riot in its ongoing growth efforts.”
ESS Metron is anticipated to proceed to function as an impartial subsidiary of Riot, with the whole worker staff being retained. Riot and ESS Metron sit up for persevering with the long-term relationships constructed over many years with ESS Metron’s clients and suppliers. ESS Metron relies in Denver, Colorado, working from amenities totaling roughly 121,000 sq. ft. The amenities are topic to long-term lease agreements.
XMS Capital Companions, LLC served as an unique monetary advisor and Sidley Austin LLP served as authorized advisor to Riot. Davis Graham & Stubbs LLP served as authorized advisor to ESS Metron.
About Riot Blockchain, Inc.
Riot Blockchain, Inc., (NASDAQ: RIOT) focuses on mining Bitcoin, and thru Whinstone, its subsidiary, internet hosting Bitcoin mining gear for institutional purchasers. The Firm is increasing and upgrading its mining operations via industrial-scale infrastructure improvement and latest-generation miner procurement. Riot’s headquarters is situated in Citadel Rock, Colorado, and the Whinstone facility operates out of Rockdale, Texas. The Firm additionally has mining gear working in upstate New York underneath a co-location internet hosting settlement with Coinmint, LLC. For extra data, go to www.riotblockchain.com.
Protected Harbor
Statements on this press launch that aren’t historic info are forward-looking statements that mirror administration’s present expectations, assumptions, and estimates of future efficiency and financial situations. Such statements are made in reliance on the protected harbor provisions of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Alternate Act of 1934. As a result of such statements are topic to dangers and uncertainties, precise outcomes could differ materially from these expressed or implied by such forward-looking statements. Phrases corresponding to “anticipates,” “believes,” “plans,” “expects,” “intends,” “will,” “potential,” “hope,” and comparable expressions are supposed to determine forward-looking statements. Ahead-looking statements could by no means materialize or could show to be incorrect. Precise outcomes and the timing of occasions may differ materially from these anticipated in such forward-looking statements on account of numerous dangers and uncertainties. These forward-looking statements could embody, however usually are not restricted to, statements about the advantages of acquisitions, together with monetary and working outcomes, and the Firm’s plans, targets, expectations, and intentions. Among the many dangers and uncertainties that would trigger precise outcomes to vary from these expressed in forward-looking statements embody, however usually are not restricted to: unaudited estimates of BTC manufacturing; our future hash price progress (EH/s); our anticipated schedule of recent miner deliveries; our capability to efficiently deploy new miners; MW capability underneath improvement; the mixing of acquired companies is probably not profitable, or such integration could take longer or be harder, time-consuming or pricey to perform than anticipated; failure to in any other case understand anticipated efficiencies and strategic and monetary advantages from acquisitions; and the affect of COVID-19 on us, our clients, or on our suppliers in reference to our estimated timelines. Detailed data concerning different elements that will trigger precise outcomes to vary materially from these expressed or implied by statements on this press launch could also be discovered within the Firm’s filings with the U.S. Securities and Alternate Fee (the “SEC”), together with within the sections entitled “Threat Components” and “Cautionary Notice Concerning Ahead-Wanting Statements” of the Firm’s Annual Report on Kind 10-Ok for the fiscal 12 months ended December 31, 2020, and our different filings with the SEC, together with, however not restricted to the extra danger elements set forth within the Firm’s Present Report on Kind 8-Ok filed with the SEC on Could 26, 2021, copies of which can be obtained from the SEC’s web site at www.sec.gov. All forward-looking statements included on this press launch are made solely as of the date of this press launch, and the Firm disclaims any intention or obligation to replace or revise any forward-looking statements to mirror occasions or circumstances that subsequently happen, or of which the Firm hereafter turns into conscious, besides as required by legislation. Individuals studying this press launch are cautioned to not place undue reliance on forward-looking statements.
Trystine Payfer Riot Blockchain, Inc. 303-794-2000 ext. 118 PR@riotblockchain.com Phil McPherson Riot Blockchain, Inc. 303-794-2000 ext. 110 IR@riotblockchain.com
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