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In summary
- Riot Platforms purchased 5,117 BTC for $510 million at an average of $99,669, funded by a private offering of $525 million.
- The company now holds 16,728 BTC, valued at $1.69 billion, following similar strategies to MicroStrategy.
- Marathon Digital also acquired 11,774 BTC for $1.1 billion, reflecting the trend among miners to shore up balance sheets with Bitcoin.
Publicly traded Bitcoin mining company Riot Platforms has purchased more BTC after raising $525 million through a private offering of convertible senior notes.
The company announced earlier this week that it would raise money from private investors as part of a strategy to buy Bitcoin and pay for other general corporate purposes.
In its latest announcement on Friday, Castle Rock, Colorado-based Riot said it had acquired 5,117 Bitcoin (BTC) at an average price of $99,669 per coin, including fees, ultimately spending $510 million in the process.
The firm now holds 16,728 BTC, currently valued at approximately $1.69 billion, he added. Bitcoin is trading at $101,170 at the time of writing, according to CoinGecko.
Riot—and other major Bitcoin miners—are following in the footsteps of software company MicroStrategy, which first bought the Cryptocurrency in 2020 during the COVID-19 pandemic to get the best return for shareholders. That Bitcoin treasury reserve strategy is now being leveraged by other companies, large and small.
MicroStrategy now uses private offerings and debt to buy more Bitcoin and is primarily working to securitize the asset—or make it available to investors so they can buy shares in the company and gain exposure to Bitcoin.
MicroStrategy currently owns 423,650 BTC, valued at nearly $43 billion, and encourages other companies to buy the cryptocurrency as a hedge against inflation.
Other major American Bitcoin miners are adopting the same strategy to strengthen their balance sheets. MARA, formerly known as Marathon Digital, said on Tuesday it had purchased 11,774 Bitcoin for $1.1 billion at an average price of $96,000 per coin.
Edited by Andrew Hayward
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