Block Mining

About Block Mining

Founded in 2019 by Michael Stoltzner, Block Mining, Inc. established itself as a provider of Bitcoin mining infrastructure and colocation services from its headquarters in Chicago, Illinois. The company focuses on developing and managing data center infrastructure within the United States to support the Bitcoin network. Its business model encompasses several revenue streams, including providing end-to-end support services for blockchain hardware, reselling mining rigs, and offering colocation services where clients can house their mining equipment in specialized facilities. This allows clients to leverage industrial-grade power, cooling, and security without building their own infrastructure.

Block Mining's services are designed for individuals and businesses engaged in cryptocurrency mining who require robust, efficient, and secure operational environments. The company operates as a vertically integrated Bitcoin miner, meaning it both mines for its own account and hosts equipment for tenants. For example, at its two operational sites in Kentucky, which have a combined capacity of 60 MW, a portion is used for self-mining while another is contracted to hosting clients. These sites, serviced by power companies like the Tennessee Valley Authority (TVA), also feature access to demand response programs, enabling sophisticated power strategies.

A significant milestone in the company's history was its acquisition by Riot Platforms (NASDAQ: RIOT) on July 24, 2024. The deal was valued at $92.5 million, paid through a combination of cash and Riot common stock, with potential for additional earn-out payments. This acquisition was a strategic move for Riot to expand its operational footprint nationally, diversify into new energy markets in Kentucky, and accelerate its growth. The Block Mining team, including co-founder Michael Stoltzner, remained in place to continue operating the existing assets and to drive expansion, leveraging Riot's financial backing. Before the acquisition, Block Mining had raised $32 million in funding, with a notable Series B round in June 2021.