Riot Platform stock price falls despite $500 million Bitcoin acquisition strategy
Riot Platforms’ stock price fell nearly 10% despite announcing a strategic Bitcoin purchase plan.
As reported by Yahoo Finance, the miner’s stock price fell 7.1% to $12.03 at market opening on December 9, followed by cryptocurrency-related stocks such as Coinbase, Marathon Digital and CleanSpark. reflected a broad decline in
This contrasts with the upward trend in the broader cryptocurrency market, where the price of Bitcoin is up 0.33% over the past 24 hours, up $99,940 at press time, according to data from CryptoSlate. However, Riot’s final price was shown at the close of after-hours trading on Friday, with Bitcoin trading 24/7. The decline in cryptocurrency stocks this morning partly reflects the price gap that occurred during weekend trading.
Bitcoin acquisition plan
Riot Platforms plans to raise $500 million through convertible senior notes to fund its Bitcoin acquisition and other corporate needs.
The company plans to offer the notes privately to institutional investors pursuant to Rule 144A of the Securities Act of 1933, according to a Dec. 9 statement. Buyers will also have the option to purchase up to $75 million in additional notes over a three-day period.
The notes are unsecured senior notes and mature on January 15, 2030. However, beginning on January 20, 2028, Riot may redeem some or all of the notes for cash, provided that at least $50 million remains outstanding, if a partial redemption occurs. . At maturity, bondholders can convert them into shares of Riot’s common stock or a combination of cash and stock.
The company said it plans to use the proceeds to acquire additional bitcoin for general corporate purposes.
Meanwhile, this fundraising strategy mirrors the moves of its Riot peers. Marathon Digital, for example, recently announced plans to raise $700 million through a similar private offering. Like Riot, Marathon plans to use the proceeds to increase its Bitcoin holdings and fund corporate initiatives.
Pierre Rochard, the company’s vice president of research, highlighted Riot’s ability to bridge bond investments with Bitcoin’s unique market conditions. He pointed to the company’s strong operating metrics, including a hashrate of 25EH/s, as a key competitive advantage.
According to Bitcoin Treasuries data, Riot holds 11,425 BTC, making it the third-largest publicly traded corporate Bitcoin holder.
Meanwhile, this funding strategy is in line with similar moves by other prominent mining competitors, such as Marathon Digital.
Earlier this month, Marathon Digital revealed plans to raise $700 million through a private offering of unsecured convertible senior notes by 2031. The company said the fundraiser will raise more Bitcoin and support general corporate activities.
