In summary
- Riot Platforms plans to raise up to $575 million in convertible senior notes to fund Bitcoin purchases and general corporate purposes.
- Riot currently has 11,425 Bitcoin, making it the third largest public holder, behind MicroStrategy and Marathon Digital.
- Riot shares fell 9% today, but are up 73% in the last three months along with other Bitcoin Mining companies.
Publicly traded Bitcoin mining company Riot Platforms plans to raise up to $500 million through a private offering of convertible senior notes, in an effort to help fund additional Bitcoin (BTC) purchases and other general corporate purposes.
The offering, which will be available to “persons reasonably considered to be qualified institutional buyers,” is expected to allow for up to an additional $75 million in note purchases, beyond the main offering of $500 million.
The notes, which are senior unsecured obligations of Riot, will mature on January 15, 2030 unless earlier converted, repurchased or redeemed. The initial conversion rate and other terms related to the notes will not be revealed until the official offer.
If it manages to raise the $575 million, Riot Platforms could add approximately 5,877 Bitcoin to its holdings at the current Bitcoin price.
As of November 30, the Bitcoin mining company held 11,425 Bitcoin, valued at more than $1.1 billion. The number increased by almost 1,000 BTC since the firm reported a balance of 10,427 Bitcoin as of September 30, in an unaudited 10-Q filing with the SEC.
The stockpile makes Riot Platforms the third-largest Bitcoin holder among publicly traded companies, behind only MicroStrategy and Marathon Digital, both of which continue to make regular Bitcoin purchases.
Riot Platforms (RIOT) shares are down 9% today, at the time of writing, to a current price of $11.76, amid a drop in the price of Bitcoin itself; BTC is down about 2%. Despite today’s drop, RIOT is up nearly 73% over the past three months, along with significant gains from other Bitcoin mining companies and publicly traded companies focused on the crypto ecosystem.
The company, which operates Bitcoin mining in Kentucky and Texas, recently reached an agreement on its attempted acquisition of another Bitcoin mining company, Bitfarms. He produced more than 16 BTC a day from his mining operations in November.
Edited by Andrew Hayward
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