Key Points
- Riot Platforms has purchased $510 million worth of Bitcoin, increasing its total holdings to 16,728 BTC.
- The acquisition makes Riot Platforms the second-largest Bitcoin holder among crypto mining companies.
Riot Platforms, a well-known crypto mining firm, recently capitalized on Bitcoin’s price surge past the $100,000 mark. On December 13, the firm announced it had augmented its Bitcoin holdings by acquiring an additional $510 million worth of the cryptocurrency.
The company, based in Castle Rock, reported that it bought 5,117 BTC at an average price of $99,669 per Bitcoin, including fees and expenses. This substantial acquisition has increased Riot’s total Bitcoin holdings to 16,728 BTC, currently valued at approximately $1.68 billion, considering Bitcoin’s current price of $100,303.
Ranking Among Bitcoin Miners
Riot Platforms’ latest purchase solidifies its position as the second-largest Bitcoin holder among crypto mining companies, following Marathon Digital.
The company was able to make this acquisition through the net proceeds of Riot’s recent $525 million convertible bond offering. The company revealed in its filing with the United States Securities and Exchange Commission (SEC) that the convertible bonds, which are set to mature in 2030 with a 0.75% coupon, generated around $511.5 million after expenses.
These bonds, according to Riot, will allow conversion into common stock starting in 2029, with provisions for earlier conversion under certain conditions. The company stated that the funds will be used for Bitcoin acquisitions and other corporate initiatives.
Strategic Decisions Amid Growing Interest
The announcement of Riot’s acquisition coincides with a report by The Wall Street Journal indicating that American hedge fund, Starboard Value, had acquired an undisclosed stake in the company.
Following the purchase, Starboard suggested that Riot consider expanding its mining operations to support artificial intelligence models to increase the company’s profitability. In response, Riot expressed its commitment to creating value for all shareholders and expressed its willingness to engage in constructive dialogue with Starboard to achieve this shared goal.
Riot Platforms is not the only major player on Wall Street making significant Bitcoin purchases. Recently, MARA Holdings, a competitor of Riot, announced that it had acquired 11,774 BTC for $1.1 billion, significantly increasing the company’s holdings to 40,435 BTC, valued at approximately $3.9 billion at the time.
Outside of the mining industry, MicroStrategy, a business intelligence firm influential in sparking corporate interest in Bitcoin, also increased its Bitcoin holdings with a $2.1 billion purchase. The company announced on December 9 that it had acquired 21,550 BTC over the weekend, as part of its $42 billion strategy to accumulate Bitcoin, funded through share sales and convertible note offerings.
