Riot Platforms Bolsters Bitcoin Holdings with $510 Million Purchase
Riot Platforms, a leading Bitcoin mining company, acquired 5,113 BTC for $510 million.
According to a December 13 post on social media platform
With this acquisition, Riot’s Bitcoin holdings surged to 16,728 BTC. At the current market price of $100,303, these holdings are worth approximately $1.68 billion.
This makes it one of the top three public holders of the flagship digital asset, ahead of electric car maker Tesla and others.
Riot’s stock price rose 10% following the announcement to $13.39 at press time.
debt financing
Riot financed the purchase with proceeds from a recent $525 million convertible note issue, which included a 0.75% coupon.
This strategy reflects the approach pioneered by MicroStrategy, which began acquiring Bitcoin in 2020 to maximize shareholder value.
Many companies are currently using private offerings and debt financing to increase their Bitcoin holdings, giving investors a way to gain exposure to the digital asset.
In particular, Matthew Sigel, head of digital asset research at VanEck, highlighted that the top 14 Bitcoin miners have raised more than $4 billion in recent months.
He noted that these funds are being used to strengthen its financial position, purchase new mining equipment, and expand its AI-based data center hosting capabilities.
Did you take a turn?
The timing of Riot’s Bitcoin purchase coincides with reports that Starboard Value, an activist investor with a significant stake in the company, advised miners to allocate a portion of their mining capacity to AI.
Riot CEO Jason Lens noted that there is increasing demand from organizations seeking large-scale power capacity for long-term contracts.
Observers have noted that repurposing some of the company’s infrastructure to provide Bitcoin mining and AI computing could provide Riot with a more stable revenue model. This dual-purpose approach can help offset volatility in cryptocurrency markets while capitalizing on the surging demand for AI services.
