Riot Platforms is a Bitcoin miner that has successfully issued a senior note of $525,000,000, as per a SEC filing dated Dec. 11, 2011.
These notes mature in 2030 with a 0.75 percent interest rate and were privately offered to institutional investors. They include provisions for conversion into Riot’s common stock starting in 2029, with the possibility of earlier conversion under specific conditions outlined in the offering.
Aggressive strategy
The proceeds will primarily fuel the company’s ambitious Bitcoin acquisition strategy, further expanding its already substantial holdings.
This strategic move follows Riot’s recent purchase of 705 Bitcoin for $68.45 million. With this latest investment, the company’s total Bitcoin stash now stands at an impressive 12,000, valued at approximately $1.2 billion at current market prices.
Riot is now the second largest Bitcoin-holding company among publically traded mining companies. It trails only Marathon Digital which holds more than 40,000 Bitcoin.
Marathon Digital announced a $700-million offering recently to increase its Bitcoin holdings.
It is clear that the competition to acquire Bitcoin has intensified, as miners are motivated by the long-term potential of the currency and its value.
Diversifying amid challenges
Despite a recent dip in Riot’s share price following the initial announcement of the offering, the company remains steadfast in its commitment to Bitcoin.
This commitment is despite the reported loss of 154.4 million dollars in the 3rd quarter of 2024. Despite this, the company saw an increase of revenue over the previous year.
Riot actively explores new growth opportunities, including in AI and high performance computing, which are rapidly developing fields.
It aims to use its vast energy infrastructure and capacity to create partnerships with technology leaders, which could provide a new lucrative revenue stream.
Jason Les, the CEO of Riot said in a recent earnings conference:
“Riot’s reputation and our image of having so much power capacity is what’s resulting in us getting these unsolicited offers for really significant amounts of power capacity. The interest that we’re seeing is for hundreds of megawatts, not necessarily smaller amounts.”
This diversification strategy reflects Riot’s proactive approach to navigating the dynamic and evolving landscape of the crypto industry, positioning itself for continued growth and success in the years to come.
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