Riot Platforms Increases Bitcoin Holdings
Riot Platforms has utilized funds from a recent convertible senior notes offering to enhance its bitcoin reserves.
"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 announced on Monday. "Consequently, Riot's total bitcoin holdings have risen to 17,429 BTC, currently valued at $1.8 billion, based on the market price of BTC at $103,873."
Previously, Riot utilized a portion of these net proceeds to purchase 5,117 bitcoin between December 10 and December 12.
Riot’s stock (ticker RIOT) witnessed a 25% dip this year as miners faced challenges in sustaining profits following the latest Bitcoin halving in April. However, the company's outlook improved after a report on December 12 from The Wall Street Journal, revealing that activist hedge fund Starboard Value acquired a stake in Riot and aims to repurpose some bitcoin mining facilities for hyperscale operations.
Riot shares have surged over 20% in the past five trading days, showing a 7.4% increase in the early trading hours on Monday, reaching approximately $13.95 at publication time.
Through recent acquisitions and overall mining output, Riot has achieved a BTC yield per share of 37.2% year to date.
"Holding bitcoin as an asset was once exclusive to crypto-native entities; it's now becoming mainstream due to a favorable post-election outlook," remarked Nathan McCauley, CEO and co-founder of Anchorage Digital. "With increased interest, expect more publicly traded companies to allocate surplus treasury funds toward bitcoin as a reserve asset."
Comments (0)