Riot Platforms plans to raise $500M to acquire more Bitcoin

Riot Platforms has announced its intention to raise $500 million to increase its Bitcoin (CRYPTO:BTC) holdings.

The company is considering a private bond issue targeted at qualified institutional investors to fund the purchase.

This decision comes as Bitcoin approaches its all-time high, with other major players in the industry also making significant Bitcoin acquisitions at elevated prices.

According to Riot, the company may offer senior convertible notes to investors, with the potential to raise an additional $75 million within three days of the initial sale.

The notes will be unsecured senior obligations with a maturity date of January 15, 2030.

At the company's discretion, the notes may be redeemed or converted into Riot’s common stock, though the specific terms will be determined during the pricing of the offering.

The funds raised will be used to acquire more Bitcoin and for general corporate purposes.

As of the third quarter of this year, Riot held 10,427 BTC, having produced 1,104 BTC that quarter without selling any.

In comparison, the company had produced 844 BTC in the previous quarter.

Riot's move aligns with the broader trend within the Bitcoin mining industry, as several publicly traded miners and data centers have raised funds through convertible bonds.

These efforts have collectively raised $5.2 billion since June, with a significant portion—70%—of that raised in the last four weeks leading up to December 5.

Notable industry figures like MicroStrategy have also been active in purchasing Bitcoin.

On December 9, MicroStrategy announced it had acquired 21,550 BTC for $2.1 billion between December 2 and 8, paying an average price of $98,783 per BTC.

“I’m sure I’ll be buying Bitcoin at $1 million a coin,” as MicroStrategy co-founder Michael Saylor noted.

At the time of reporting, the Bitcoin price was $97,902.17.