Riot Platforms buys more bitcoin, raising holdings to 17,429 BTC

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The Block2024/12/16 16:22

By:Jason Shubnell

Riot has increased its holdings to 17,429 BTC, currently valued at $1.8 billion based on the current market price of BTC of $103,873.Riot shares (ticker RIOT) are up more than 20% over the past five trading days.

Riot Platforms buys more bitcoin, raising holdings to 17,429 BTC image 0

Riot Platforms has used proceeds from a recent convertible senior notes offering to increase its bitcoin holdings.

"With the additional proceeds from Riot’s upsized $594 million, 0.75% coupon convertible bond issue, the Company has acquired 667 BTC at an average price of $101,135 per BTC," the company said Monday morning. "As a result, Riot has increased its holdings to 17,429 BTC, currently valued at $1.8 billion based on the current market price of BTC of $103,873."

The bitcoin miner had already used a portion of these net proceeds from this offering to acquire 5,117 bitcoin between Dec. 10 and Dec. 12.

Riot’s stock (ticker RIOT) was down 25% this year as miners struggled to maintain profitability following the latest Bitcoin halving in April. However, its fortunes began to change following a Dec. 12 report from The Wall Street Journal that activist hedge fund manager Starboard Value bought a stake in Riot and wants to convert some of its bitcoin mining facilities into capacity for hyperscalers.

Riot shares are up more than 20% over the past five trading days. The stock was up 7.4% in the first hour of Monday's session, trading around $13.95 at publication time.

Through today's acquisition and overall mining production, Riot said it has generated a BTC Yield per share of 37.2% year to date.

"Putting bitcoin on the balance sheet was once a reality for only the crypto-native; it’s now going mainstream on the back of a promising post-election outlook," Nathan McCauley, CEO and co-founder of Anchorage Digital, previously told The Block . "With the floodgates starting to open, expect more and more publicly traded names to put excess treasury cash to work by looking toward bitcoin as a reserve asset."

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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