Riot Platforms Plans $185M Asset Acquisition from Rhodium Encore

Riot Platforms Inc. has announced a non-binding term sheet for a potential $185 million acquisition of assets from Rhodium Encore LLC at its Rockdale Facility, which includes cash, a power security deposit return, and Riot shares. This strategic move aims to enhance Riot's Bitcoin mining operations by acquiring Rhodium's 125 MW power capacity, allowing for better control over its infrastructure. The transaction requires approval from the bankruptcy court, which introduces uncertainties regarding its completion. In addition to the asset transfer, both parties will dismiss existing litigation and release future claims unrelated to the transaction. The acquisition aligns with the trend towards vertical integration within the Bitcoin mining industry, aiming to improve operational efficiency. As the deal progresses, investors are advised to monitor its impact on Riot's financial performance.