Key Takeaways
- Riot Platforms plans to raise $500M via convertible senior notes.
- Funds will support Bitcoin purchases and corporate expansion.
- Riot mined 1,104 Bitcoin in Q3, boosting its holdings to 10,427.
Riot Platforms, Inc. has unveiled plans to raise $500 million through a private offering of convertible senior notes, aimed at qualified institutional buyers.
Proceeds from the offering will be used to purchase Bitcoin and fund general corporate purposes, further solidifying Riot’s position in the Bitcoin mining sector.
Background
The notes, set to mature on January 15, 2030, will be unsecured senior obligations.
Investors may also purchase an additional $75 million in notes within three days of the initial issuance. The terms, including the conversion rate and pricing, will be finalized at the time of the offering.
Riot may settle the notes through conversion to common stock, redemption, or cash payments.
Q3 Bitcoin holdings
As of Q3 2024, Riot held 10,427 Bitcoin, having mined 1,104 Bitcoin during the quarter—an increase from the 844 mined in Q2.
The funds raised through this offering will support the company’s plans to expand its Bitcoin holdings further.
Industry trend
Industry data highlights a broader trend of Bitcoin mining firms using convertible bonds to finance growth. Seven publicly traded miners and data centers have raised $5.2 billion since June, with 70% of these funds secured in the four weeks before December 5.
Riot’s move leverages favorable market conditions and the rising value of Bitcoin to secure capital for expansion.
Completion of the offering and its terms will depend on investor demand and prevailing market conditions.
