TechFlow news — On March 22, according to an official announcement, Riot Platforms, Inc. (Nasdaq: RIOT) announced the signing of a non-binding term sheet whereby its wholly-owned subsidiary, Whinstone US, Inc. (or an affiliate), intends to acquire certain assets from Rhodium Encore LLC (and its affiliates, collectively "Rhodium") located at Riot's Rockdale facility. Riot has also filed a motion seeking approval of the settlement under Rule 9019 of the Federal Rules of Bankruptcy Procedure in Rhodium’s bankruptcy case.
Under the terms of the term sheet, upon completion of the transaction, Whinstone (or its affiliate) will provide Rhodium with total consideration of $185 million, consisting of: (i) $129.9 million in cash, (ii) a return of Rhodium’s $6.1 million power security deposit, and (iii) $49 million worth of Riot common stock (priced based on the volume-weighted average price over the 10 trading days preceding closing).
In exchange for the consideration, Rhodium will transfer ownership of all tangible property located at the Rockdale facility, including all ASIC mining rigs, and vacate the site within three business days following closing. Riot will then immediately assume control of Rhodium’s 125 megawatts of electric load capacity and existing operational assets at the Rockdale facility, fully allocating the entire site’s power capacity for self-use. Whinstone and Rhodium will also dismiss all pending litigation, including any appeals, and release any future claims unrelated to the closing of the transaction.
