Riot Platforms Completes $525 Million Note Offering, Doubling Down on BTC Acquisition
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Riot Platforms Completes $525 Million Note Offering, Doubling Down on BTC Acquisition
Riot is the second-largest BTC holder among publicly traded mining companies, trailing only Marathon Digital, which currently holds over 40,000 BTC.
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According to a filing submitted to the U.S. Securities and Exchange Commission on December 11, BTC miner Riot Platforms successfully completed a $525 million offering of senior notes.
The notes mature in 2030, carry an interest rate of 0.75%, and were issued privately to institutional investors.
The notes include terms allowing conversion into Riot common stock beginning in 2029, with potential for earlier conversion under specific conditions outlined during the offering.
The proceeds from this fundraising will be primarily used to support the company's BTC acquisition strategy, further expanding its already substantial BTC holdings.
Prior to this strategic move, Riot recently acquired 705 BTC for $68.45 million.
With this latest investment, the company’s total BTC reserves have reached 12,000 BTC, valued at approximately $1.2 billion at current market prices.
This positions Riot as the second-largest publicly traded mining company holder of BTC, behind only Marathon Digital, which currently holds over 40,000 BTC.
This aggressive expansion strategy mirrors actions taken by other similar firms, including Marathon Digital, which recently announced a $700 million stock offering to boost its BTC reserves.
This highlights the intensifying competition among miners to accumulate BTC, as they express strong confidence in Bitcoin’s long-term value and significant return potential.
Despite a recent decline in Riot’s stock price following the initial announcement of the offering, the company remains firmly committed to BTC.
Riot reported a net loss of $154.4 million in Q3 2024, although the company did achieve year-over-year revenue growth.
In addition to BTC mining, Riot is actively exploring new growth avenues, particularly in the rapidly developing fields of artificial intelligence and high-performance computing.
The company aims to leverage its extensive energy capacity and infrastructure to attract leading technology firms as partners, potentially unlocking lucrative new revenue streams.
"Riot’s reputation and our image of having robust power capacity are why we’re receiving these unsolicited offers of large-scale power availability," said Jason Les, CEO of Riot, during the latest earnings call. "Our interest is in hundreds of megawatts, not necessarily smaller amounts."
This diversification strategy reflects Riot’s proactive approach to navigating the evolving dynamics of the crypto asset industry, positioning itself for sustained growth and success in the years ahead.
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