By Sam Boughedda
Investing.com — Shares of Riot Blockchain Inc (NASDAQ:RIOT) are rising Wednesday after the company announced it has acquired electrical equipment solutions firm ESS Metron.
Bitcoin mining company Riot will pay approximately $50 million to acquire the company, consisting of up to 715,413 shares and $25 million in cash.
Riot Blockchain shares are currently 8.1% above Tuesday's close.
ESS Metron is a key supplier to Riot's Whinstone facility in Texas, providing highly engineered, custom products that are critical to Bitcoin mining infrastructure. Riot told investors that the acquisition will help ensure the company's timely miner installations by de-risking procurement of mission-critical infrastructure.
In addition, ESS's engineering proficiency has been a crucial component in developing Riot’s customized technology for its 200 MW immersion-cooling expansion project.
“The successful acquisition of ESS Metron marks yet another milestone in establishing Riot as a leader in Bitcoin mining,” said Jason Les, CEO of Riot. “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."