Thanks to a number of acquisitions by large companies, high-end cryptocurrency mining equipment is becoming more and more scarce. The latest player to make a major move in the crypto mining industry is Riot Blockchain. The Colorado-based miner announced in a press release a mammoth $650 million deal to acquire Whinstone US Inc, a Texas-based data facility owned by Northern Data.
As outlined in Riot Blockchain’s press release, the deal consists of $80 million in cash and $570 million in stock, resulting in Northern Data now owning 12% of Riot Blockchain. With this acquisition, Riot Blockchain becomes the largest publicly traded Bitcoin mining corporation in North America measured by operating capacity. The Whinstone site is reportedly North America’s largest individual Bitcoin hosting facility, with a developed capacity of 300MW and a total data center capacity of more than 750MW.
This is not the first time Riot Blockchain has made headlines for it’s major investments, which include a $138 million purchase of more than 42,000 Antminer mining rigs from Bitmain Technologies Limited. Riot’s recent expansion is just one example of the broader North American market push for hash rate, which has in recent history been dominated by Chinese firms.
With Bitcoin mining emerging as such a lucrative activity, the demand for colocation centers and hosting services has soared, prompting industry giants with deep pockets, such as Riot, to buy out what remains.
An increased demand for colocation and hosting services means an increase in demand for the companies that provide them. Wattum Management provides its customers with industry-leading Bitcoin mining equipment, hosting and management at competitive rates. If the current industry dynamic is any indication, these companies will be playing an increasingly important role in providing access to these high-demand resources. As the value of Bitcoin continues to rise, we can expect an increase in price for hosting services as colocation centers recognize their value. Wattum currently remains the best priced management and hosting service provider in the US amidst this industry activity, as other colocation facilities maintain their resale prices at almost double the market value.