Riot Platforms Acquires 667 BTC for $69 Million, Totaling 17,429 BTC
Riot Platforms has acquired 667 BTC for $69 million, averaging $101,135 per Bitcoin. This brings its total holdings to 17,429 BTC, valued at nearly $2 billion. The announcement increased Riot's stock by 8%, indicating investor confidence.
Since focusing on Bitcoin mining in 2018, Riot operates from Oklahoma and has adopted a strategy akin to MicroStrategy, which includes share buybacks to bolster Bitcoin reserves. Riot’s Q4 Bitcoin yield is 36.7%, with a year-to-date yield of 37.2%, reflecting consistent growth despite share dilution.
Other prominent investors are also active: Marathon Digital (MARA) purchased 11,774 BTC for $1.1 billion through a zero-coupon convertible note, while MicroStrategy recently acquired 15,350 BTC for $1.5 billion at an average price of $100,386. MicroStrategy now holds over $27.1 billion in Bitcoin, with a Q4 yield of 46.4% and a year-to-date yield of 72.4%.
MicroStrategy’s stock (MSTR) has risen nearly 500% this year, reflecting Bitcoin's performance and placing the firm among the top 100 publicly traded companies in the U.S. Michael Saylor emphasizes Bitcoin as a hedge against inflation and a valuable corporate asset, stating, “Everyone buys Bitcoin at the price they deserve. BTC doesn’t wait. It simply transfers wealth to those who see.”
Not all corporations are embracing Bitcoin; Microsoft shareholders recently rejected a proposal to include it in treasury reserves. Conversely, Amazon shareholders suggested allocating part of the company’s $88 billion cash reserves to Bitcoin as an inflation hedge.
The increasing interest in Bitcoin from firms like Riot, Marathon, and MicroStrategy highlights a trend of institutional adoption, viewing Bitcoin as a long-term investment. Riot's recent acquisition underscores its commitment to enhancing its Bitcoin reserves amid positive market sentiment.
This rise in corporate Bitcoin purchases illustrates a broader shift of traditional businesses towards cryptocurrency as a store of value.