Stay up to date with the CriptoTendencia WhatsApp channel: Instant news about Bitcoin, Altcoins, DeFi, NFT, Blockchain and Metaverse. Subscribe!
In a major expansion of its Cryptocurrency portfolio, Bitcoin Mining company Riot Platforms announced that it has acquired, over a three-day period from December 10, 2024 to December 12, 2024, 5,117 Bitcoins for more than 510 million dollars.
With the net proceeds from Riot’s recent $525 million, 0.75% coupon convertible bond issue, the Company has acquired 5,117 BTC at an average price of $99,669 per BTC, including fees and expenses. As a result, Riot has increased its holdings to 16,728 BTC, currently valued at… pic.twitter.com/Fi6x5hnNDR
— Riot Platforms, Inc. (@RiotPlatforms) December 13, 2024
Incidentally, this strategic move comes after a challenging third quarter, marked by a net loss of $154.4 million, attributed to increased costs and losses from unrealized investments. Despite the operational challenges, the company has decided to bet on the long-term potential of Bitcoin, acquiring a considerable amount of the cryptocurrency.
Now, the miner Marathon Digital has also adopted a strategy with Bitcoin. Other companies that have taken this path are Thumzup, SOS Limited of China, Genius Group and MicroStrategy, being the largest holder of BTC in the world.
More Read
Additionally, the think tank National Center for Public Policy Research has also filed a shareholder proposal urging Amazon to add Bitcoins to its corporate reserves.
As a curious fact, earlier this week, shareholders of the technology giant Microsoft rejected a proposal that wanted the company to add Bitcoin to its treasury. However, observers say this could only be short-term.
Riot Platforms continues to accumulate Bitcoin on a large scale
As a result of this acquisition, as of December 12, 2024, Riot Platforms now holds a total of 16,728 Bitcoins. The value of these assets, based on the latest BTC price, is approximately $1.69 billion. Incidentally, the purchases coincide with reports that activist investor Starboard Value has taken a “significant position” in the Bitcoin miner.
Notably, financing for this large-scale purchase was obtained from the net proceeds of the company’s 0.75% convertible senior notes due 2030, supplemented by its available cash reserves.
In fact, Riot has established itself as one of the largest public holders of the cryptocurrency in the world. With this acquisition, it positions itself as the third largest publicly traded company with the most BTC, only behind giants such as MicroStrategy and MARA Holdings.
In closing, the growing demand for Bitcoin from companies like Riot Platforms demonstrates growing institutional interest in cryptocurrencies and could boost the price of Bitcoin in the long term.
I say goodbye with this quote from Michael Saylor: “As the Sun sets gold, the Bitcoin star continues to rise.”
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
