Riot Platforms has unveiled plans to raise $500 million in funding to acquire more Bitcoin. The company’s move comes as Bitcoin nears its all-time high, joining several industry giants who have made significant Bitcoin acquisitions at premium prices.
Proposed Bond Offering to Fund Bitcoin Purchases
Riot Platforms is considering a private bond issuance aimed at qualified institutional investors. The offering involves senior convertible notes, which could provide buyers with the option to purchase an additional $75 million in notes within three days of the initial issuance.
These notes, set to mature on January 15, 2030, will be unsecured and may be converted into Riot common stock at the company’s discretion. The conversion rate and other terms will be finalized during the offering. Riot plans to use the funds primarily to purchase more Bitcoin and for general corporate purposes.
As of the end of the third quarter, Riot held 10,427 BTC after mining 1,104 BTC during the quarter, while selling none. In the previous quarter, the company produced 844 BTC.
A Growing Trend Among Bitcoin Miners
Riot Platforms isn’t alone in leveraging bonds to raise funds for Bitcoin investments. Data from The Miner Mag shows that since June, seven publicly traded Bitcoin mining firms and data centers—excluding Riot—have raised $5.2 billion through convertible bonds. Notably, 70% of this total was raised in the four weeks leading up to December 5.
Key examples include:
- Core Scientific: Raised $350 million in August, increasing the amount to $400 million the next day.
- Marathon Digital (MARA): Issued $1 billion in convertible notes on November 21, intending to address debt and purchase Bitcoin. MARA subsequently announced the acquisition of 6,474 BTC, bringing its holdings to 34,797 BTC.
- MicroStrategy: Acquired 21,550 BTC between December 2 and 8 for $2.1 billion, paying an average price of $98,783 per BTC. Michael Saylor, the company’s co-founder, remains bullish, famously stating, “I’m sure I’ll be buying Bitcoin at $1 million a coin.”
The Bigger Picture
Riot’s decision to raise funds for Bitcoin purchases reflects the broader confidence among institutional players in the cryptocurrency’s long-term value. By joining others in making high-stakes investments, Riot positions itself as a major contender in the rapidly evolving Bitcoin mining and acquisition landscape.
