Key Takeaways
- Riot Platforms acquired 5,117 BTC for $510 million following a $525M fundraising.
- The purchase brings Riot's total Bitcoin holdings to 16,728 BTC, worth $1.69 billion.
- MicroStrategy's Bitcoin reserve strategy continues to influence other companies.
Bitcoin mining giant Riot Platforms announced a significant purchase of 5,117 Bitcoin (BTC), spending $510 million at an average price of $99,669 per coin, including fees.
The acquisition followed a successful $525 million private senior convertible notes offering aimed at strengthening the company’s Bitcoin reserves and funding corporate operations.
Background
The Castle Rock, Colorado-based company now holds 16,728 BTC, valued at approximately $1.69 billion based on Bitcoin’s current price of $101,170.
Riot joins the growing list of companies adopting a Bitcoin treasury strategy inspired by MicroStrategy, which began using private debt offerings to accumulate Bitcoin during the COVID-19 pandemic.
Company statement
Riot’s recent $525 million convertible bond issue allowed the acquisition of 5,117 BTC.
MicroStrategy
MicroStrategy, a software firm that pioneered the strategy in 2020, now holds 423,650 BTC worth nearly $43 billion and continues to encourage other corporations to adopt Bitcoin as a hedge against inflation.
Other miners
Riot and other miners, such as MARA (formerly Marathon Digital), are increasingly leveraging similar approaches to bolster their balance sheets.
MARA recently purchased 11,774 Bitcoin for $1.1 billion, demonstrating the growing trend of corporate Bitcoin acquisition among major players in the mining and technology sectors.
