Riot Platforms Buys $510M Worth of Bitcoin to Boost Crypto Holdings

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As a seasoned crypto investor with more than a decade of experience under my belt, I must say that the recent moves by Riot Platforms and other industry giants to increase their Bitcoin holdings are nothing short of strategic brilliance. The timing couldn’t be better, with Bitcoin surging beyond the $100,000 threshold.

As a crypto investor, I’ve been witnessing the remarkable rise of Bitcoin surpassing $100,000 recently, and it seems that many companies are seizing this golden opportunity to bolster their presence in the leading digital asset. Last Friday, December 13, the well-known mining company Riot Platforms announced its strategic move to boost its Bitcoin holdings by acquiring an extra $510 million worth of BTC ($101,579 each). With a 24-hour volatility of only 0.7%, this significant purchase was made in a relatively stable market environment. The new addition brings the total market capitalization of Bitcoin to approximately $2.01 trillion, while its 24-hour trading volume reached an impressive $43.57 billion.

Located in Castle Rock, the company announced it has purchased 5,117 Bitcoins at an average cost of about $99,669 per Bitcoin, factoring in fees and other expenses. This substantial purchase brings Riot’s total Bitcoin holdings to 16,728 Bitcoins, currently valued at around $1.68 billion, given the current price of Bitcoin which is approximately $100,303.

Second-Largest Bitcoin Holder Among Miners

With the recent acquisition, Riot Platforms now stands as the second-biggest Bitcoin owner among cryptocurrency mining corporations, trailing behind Marathon Digital.

As a researcher, I’m excited to share that we were able to facilitate the acquisition thanks to the successful offering of Riot’s recent $525 million convertible bonds.

Using the funds generated from Riot’s latest $525 million, 0.75% convertible bond sale, the company purchased approximately 5,117 Bitcoins at an average cost of $99,669 per Bitcoin (including fees and other expenses). This acquisition has boosted Riot’s total Bitcoin holdings to 16,728 BTC, currently worth…

— Riot Platforms, Inc. (@RiotPlatforms) December 13, 2024

According to the report submitted to the U.S. Securities and Exchange Commission (SEC), Riot revealed that the maturity-dated 2030 convertible bonds, which offer a 0.75% interest rate, brought in approximately $511.5 million after accounting for expenses.

According to the company’s announcement, these bonds can be exchanged for common shares as early as 2029, and there are provisions for earlier conversion if certain conditions are met. Riot has revealed that the raised funds will primarily go towards purchasing Bitcoin and supporting various corporate projects.

Strategic Moves Amid Rising Interest

At the same time, Riot’s announcement was made concurrently with a report from The Wall Street Journal revealing that Starboard Value, a U.S-based hedge fund, had bought an unspecified share in the corporation.

Based on the findings from the report, Starboard proposed to Riot after their acquisition that they think about expanding their mining operations to incorporate AI models. This move could potentially boost their financial earnings.

In response, the company stated they are “dedicated to generating benefits for all stockholders” and expressed eagerness for a “productive conversation with Starboard about methods to mutually attain this common objective.

Additionally, it’s worth noting that Riot Platforms isn’t the only Wall Street firm that has recently bought Bitcoin. On a recent Wednesday, their rival, MARA Holdings, disclosed they had purchased 11,774 Bitcoins for around $1.1 billion. This purchase boosted their Bitcoin holdings to about 40,435 coins, which were worth roughly $3.9 billion at that moment.

Apart from mining operations, MicroStrategy Inc., a business intelligence company (traded as MSTR on NASDAQ), has further invested in Bitcoin to the tune of $2.1 billion. On December 9th, Monday, they revealed that over the weekend, they acquired 21,550 Bitcoins as part of their strategy to amass a total of around $42 billion worth of the cryptocurrency. This investment was facilitated through the sale of shares and offering of convertible notes.

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2024-12-13 22:03