Riot Platform Completes $525 Million Note to Drive Bitcoin Purchases
Bitcoin (BTC) miner Riot Platforms has successfully completed the issuance of $525 million in senior notes, according to a document filed with the SEC on December 11.
The bond, which matures in 2030 and carries a coupon of 0.75%, was offered privately to institutional investors. It includes a provision for conversion into shares of Riot’s common stock beginning in 2029, with early conversion possible under certain conditions described in the offering.
aggressive strategy
The proceeds will primarily fuel the company’s ambitious Bitcoin acquisition strategy, further expanding its already significant holdings.
This strategic move follows Riot’s recent purchase of 705 bitcoins for $68.45 million. The investment brings the company’s total Bitcoin holdings to an impressive 12,000, worth about $1.2 billion at current market prices.
This makes Riot the second-largest Bitcoin holder among publicly traded mining companies, behind Marathon Digital, which currently holds over 40,000 Bitcoins.
This aggressive expansion strategy mirrors similar moves by other major players in the Bitcoin mining industry, including Marathon Digital, which recently announced its own $700 million offering to bolster its Bitcoin holdings.
This highlights the growing competition among miners seeking to accumulate Bitcoin, driven by belief in its long-term value and potential for significant returns.
Diversification amidst challenges
Despite Riot’s stock price falling following the initial announcement of its latest offering, the company has remained steadfast in its commitment to Bitcoin.
This commitment comes despite the company reporting a net loss of $154.4 million in the third quarter of 2024, although the company’s revenue increased year-over-year.
In addition to Bitcoin mining, Riot is actively exploring new avenues for growth, particularly in the rapidly evolving fields of AI and high-performance computing.
The company aims to leverage its extensive energy capacity and infrastructure to attract partnerships with leading technology companies and provide potentially lucrative new revenue streams.
Riot CEO Jason Les said in a recent earnings call:
“Riot’s reputation and image of being oversized has actually resulted in us receiving unsolicited offers for significant amounts of power capacity. “The interest we’re seeing is for hundreds of megawatts, not necessarily less.”
This diversification strategy reflects Riot’s proactive approach to navigating the dynamic and evolving landscape of the cryptocurrency industry to position itself for continued growth and success in the future.
