Riot Platforms Raises $600 Million to Boost Bitcoin Inventory
Date: 2024-12-11 Author: Oliver Abernathy Categories: BUSINESS
The notes will mature on January 15, 2030. The exact terms, including the initial conversion rate, will be set at the time of the offering, subject to market conditions.
Riot Platforms has increased the principal amount of the offering to $525 million, with an interest rate of 0.75% per annum. The company expects net proceeds after all expenses for the issue to be approximately $584.6 million.
The proceeds will be used to purchase additional bitcoin and implement general corporate objectives.
According to Bitcoin Treasuries, the company's current reserves are 11,425 BTC worth about $1.12 billion. However, this figure is significantly inferior to MARA Holdings' bitcoin reserves, which exceed Riot's assets by more than three times. MARA also previously issued convertible bonds, raising $1 billion to buy cryptocurrency.
In November, MARA acquired 6,474 BTC worth $618 million, and in December, it added another 1,423 BTC, taking advantage of the decline in the price of bitcoin to $90,500.
Recall that MicroStrategy, the leader in corporate bitcoin reserves, increased its reserves to 423,650 BTC (~$41.4 billion) thanks to the recent purchase of 21,550 BTC.
