Riot Blockchain Acquires ESS Metron

Riot’s position as a vertically-integrated industry leader in Bitcoin mining significantly enhanced via the acquisition of ESS Metron, a premier provider of highly-engineered electrical equipment solutions

Castle Rock, CO, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Riot Blockchain, Inc. (NASDAQ: RIOT) ("Riot”, “Riot Blockchain” or the “Company") today announced that it has acquired Ferrie Franzmann Industries, LLC (d/b/a ESS Metron) (“ESS Metron”). The total consideration payable in the transaction is valued at approximately $50 million, consisting of up to 715,413 shares of Riot common stock and $25 million in cash, funded with cash on the balance sheet.

• ESS Metron is a leader with over sixty years of experience in designing and producing highly engineered electrical equipment solutions, many of which are mission-critical to successfully deploying Bitcoin mining operations at scale.
• Acquisition assists in ensuring Riot’s timely miner installations by de-risking procurement of mission-critical infrastructure.
• Acquisition enhances Riot’s competitive position across the electrical supply chain, as ESS Metron is also a leading supplier to numerous third-party clients.
• Transaction valued at approximately $50 million, $25 million payable in cash, and remainder in issuance of up to 715,413 shares of Riot’s common stock.

The acquisition of ESS Metron, currently a key supplier to Riot’s Whinstone facility, is highly complementary to Riot and its ongoing infrastructure expansion to 700 MW. ESS Metron provides highly engineered, custom product offerings mission-critical to Bitcoin mining infrastructure and significantly improves Riot’s ability to improve its internal engineering capabilities. ESS Metron’s engineering proficiency has been a critical component in developing Riot’s customized immersion-cooling technology for its previously announced 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. In addition, Riot will continue its fast-tracked expansion project as the Company benefits from internalizing ESS Metron’s engineering and industry expertise. We are thrilled to welcome the talented ESS Metron team to the Riot family and look forward to growing our future together.”