The company funded its latest Bitcoin purchase with proceeds from a $525 million convertible bond issuance.
Bitcoin’s recent surge beyond the $100,000 threshold has prompted several companies to seize the opportunity to strengthen their positions in the leading crypto asset. On Friday, December 13, renowned crypto mining firm Riot Platforms revealed it had increased its Bitcoin holdings by purchasing an additional $510 million worth of BTC $87 314 24h volatility: 1.7% Market cap: $1.74 T Vol. 24h: $45.61 B .
The Castle Rock-based company disclosed that it acquired 5,117 BTC at an average price of $99,669 per Bitcoin, including fees and expenses. This significant acquisition increased Riot’s total Bitcoin holdings to 16,728 BTC, with a current market valuation of approximately $1.68 billion, based on Bitcoin’s prevailing price of $100,303.
Second-Largest Bitcoin Holder Among Miners
The latest purchase has cemented Riot Platforms as the second-largest Bitcoin holder among crypto mining companies, following Marathon Digital.
The acquisition was made possible through the net proceeds of Riot’s recent $525 million convertible bond offering.
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, inclusive of 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
In its filing with the United States Securities and Exchange Commission (SEC), Riot detailed that the convertible bonds, set to mature in 2030 with a 0.75% coupon, generated around $511.5 million after expenses.
These bonds, according to the company, will allow conversion into common stock starting in 2029, with provisions for earlier conversion under specific conditions. Riot stated that the funds would be used for Bitcoin acquisitions and other corporate initiatives.
Strategic Moves Amid Rising Interest
Meanwhile, the timing of Riot’s announcement coincides with a report by The Wall Street Journal indicating that Starboard Value, an American hedge fund, had acquired an undisclosed amount of stake in the company.
According to the report, after the purchase, Starboard suggested that Riot consider diversifying its mining operations to include support for artificial intelligence models to increase the company’s profitability.
In response, the company said it is “ committed to creating value for all shareholders,” adding that it “looks forward to constructive dialogue with Starboard on ways to achieve this shared goal.”
Meanwhile, Riot Platforms is not the only Wall Street giant that has purchased Bitcoin in recent times. On Wednesday, the company’s competitor, MARA Holdings, announced that it had bought 11,774 BTC for $1.1 billion. The acquisition skyrocketed the company’s holdings to 40,435 BTC, which was valued at approximately $3.9 billion at the time.
Beyond the mining industry, MicroStrategy Inc (NASDAQ: MSTR), a business intelligence firm, which influenced the corporate interests in Bitcoin also upped its bag with $2.1 billion worth of the crypto asset. On Monday, December 9, the company announced that it bought 21,550 BTC during the weekend. The purchase was part of the company’s $42 billion strategy to accumulate Bitcoin, funded through share sales and convertible note offerings.
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