Riot Platforms Acquires $510 Million in Bitcoin, Increasing Holdings to 16,728 BTC
Bitcoin's recent rise above $100,000 has led several companies to increase their investments in the cryptocurrency. On December 13, Riot Platforms, a prominent crypto mining firm, announced the acquisition of an additional $510 million worth of Bitcoin.
Riot purchased 5,117 BTC at an average price of $99,669 per Bitcoin, including fees. This brought Riot's total Bitcoin holdings to 16,728 BTC, valued at approximately $1.68 billion based on Bitcoin’s current price of $100,303.
Second-Largest Bitcoin Holder Among Miners
This purchase positions Riot Platforms as the second-largest Bitcoin holder among crypto mining companies, following Marathon Digital. The acquisition was funded by proceeds from Riot’s recent $525 million convertible bond offering.
With the net proceeds from Riot’s recent $525 million, 0.75% coupon convertible bond issue, the Company has acquired 5,117 BTC at an average price of $99,669 per BTC, inclusive of fees and expenses. As a result, Riot has increased its holdings to 16,728 BTC, currently valued at… pic.twitter.com/Fi6x5hnNDR
— Riot Platforms, Inc. (@RiotPlatforms) December 13, 2024
In its filing with the U.S. Securities and Exchange Commission (SEC), Riot stated that the convertible bonds, maturing in 2030 with a 0.75% coupon, generated around $511.5 million after expenses. These bonds can convert into common stock starting in 2029, with options for earlier conversion under specific conditions. The funds will support Bitcoin acquisitions and other corporate initiatives.
Strategic Moves Amid Rising Interest
Riot’s announcement coincided with a report from The Wall Street Journal revealing that Starboard Value, an American hedge fund, had acquired a stake in the company. Following this investment, Starboard suggested that Riot diversify its mining operations to support artificial intelligence models for increased profitability.
Riot committed to creating value for shareholders and expressed eagerness for constructive dialogue with Starboard to achieve mutual goals.
Other companies have also made significant Bitcoin purchases. MARA Holdings announced the acquisition of 11,774 BTC for $1.1 billion, raising its total holdings to 40,435 BTC, valued at approximately $3.9 billion. Additionally, MicroStrategy announced the purchase of 21,550 BTC for $2.1 billion, part of its strategy to accumulate Bitcoin through share sales and convertible note offerings.