Riot Platforms, Inc. (NASDAQ: RIOT) has announced its entry into a non-binding term sheet outlining the proposed acquisition of specific assets owned by Rhodium Encore LLC at Riot's Rockdale facility. The terms of the potential acquisition, if closed, would see Whinstone US, Inc. or an affiliate provide $185 million in total consideration to Rhodium, which includes $129.9 million in cash, a $6.1 million return of Rhodium's power security deposit, and $49.0 million in Riot shares.
In exchange for this consideration, Rhodium would transfer ownership of all tangible property located at the Rockdale facility, including all ASIC miners, and vacate the site within three business days following the closing of the transaction. Riot would then immediately assume Rhodium's 125 MW of power capacity and the existing operating assets at the Rockdale facility, resulting in the entire power load being allocated to self-use.
The transaction and settlement would also involve the dismissal of all existing litigation and release of any and all future claims not connected to the closing of the transaction. These developments are subject to the approval of the bankruptcy court pursuant to bankruptcy rule 9019 and bankruptcy code section 363, and will require the execution of definitive agreements between Whinstone and Rhodium.
Riot Platforms, Inc., with a vision to be the world's leading bitcoin-driven infrastructure platform, is a bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The company has bitcoin mining operations in Central Texas and Kentucky, and electrical switchgear engineering and fabrication operations in Denver, Colorado, and Houston, Texas. Today the company's shares have moved 8.6% to a price of $8.64. If you want to know more, read the company's complete 8-K report here.
