Core

Bitcoin

Notable

Riot Platforms has proposed raising $500 million to buy more Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>). The company may conduct a private bond issue for qualified institutional investors. Its decision comes as Bitcoin hovers around its all-time high, and other industry heavyweights have made large acquisitions at top prices.
<h2 id="confidence-rather-than-interest">Confidence rather than interest</h2>
Riot may offer <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-are-convertible-senior-notes-how-microstrategy-uses-them-to-buy-bitcoin" rel="" target="_self" text="null" title="https://cointelegraph.com/explained/what-are-convertible-senior-notes-how-microstrategy-uses-them-to-buy-bitcoin">senior convertible notes</a> through private offering memorandums. Purchasers would have the option of buying $75 million more in notes within three days of their initial purchase. The offering will be subject to market conditions, it <a data-ct-non-breakable="null" href="https://www.riotplatforms.com/riot-platforms-announces-proposed-private-offering-of-500-million-of-convertible-senior-notes/" rel="null" target="null" text="null" title="null">said</a>, and no mention was made of interest payments.
The notes will be unsecured senior obligations with a Jan. 15, 2030, maturity date and will be redeemed or converted into Riot common stock at the company’s election. The conversion rate and other terms will be determined at the time of pricing the offering.
Riot will use the funds “to acquire additional&nbsp;Bitcoin&nbsp;and for general corporate purposes.”
Riot <a data-ct-non-breakable="null" href="https://d2ghdaxqb194v2.cloudfront.net/2865/195297.pdf" rel="null" target="null" text="null" title="null">held</a> 10,427 BTC at the end of the third quarter of the year after producing 1,104 BTC that quarter and selling none. It produced 844 BTC in the previous quarter.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitfarms-riot-settle-dispute-board-changes" rel="null" target="null" text="null" title="null">Bitfarms,&nbsp;Riot&nbsp;settle dispute with board changes</a>
<h2 id="great-miners-think-alike">Great miners think alike</h2>
According to The Miner Mag, seven publicly traded Bitcoin miners and data centers, not counting Riot, have <a data-ct-non-breakable="null" href="https://theminermag.com/news/2024-12-05/miner-weekly-convertible-debt-bitcoin/" rel="null" target="null" text="null" title="null">issued</a> convertible bonds since June to raise a total of $5.2 billion. Of that amount, 70% was raised in the last four weeks leading up to Dec. 5.
<figure>
 <img alt="Riot Platforms raising $500M to buy Bitcoin amid price surge" src="https://s3.cointelegraph.com/uploads/2024-12/0193ac69-2c0c-7e05-98a3-f431649c7bf7" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/saylor/status/1866092432045306008" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/saylor/status/1866092432045306008">Michael Saylor</a>
 </figcaption>
</figure>
Notable among those offerings was Core Scientific’s $350 million issue in August, which <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/core-scientific-drops-10-after-400-million-convertible-senior-note-offer" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/news/core-scientific-drops-10-after-400-million-convertible-senior-note-offer">was raised to $400 million</a> the following day. 
MARA, formerly Marathon Digital,&nbsp;issued $1 billion in convertible notes on Nov. 21. It <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mara-holdings-1b-convertible-notes-bitcoin-acquisition" rel="null" target="null" text="null" title="null">intended to use the funds</a> to manage old debt and make Bitcoin purchases. A week later, it said it <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mara-purchases-6-474-bitcoin-convertible-notes-offering" rel="" target="_self" text="null" title="https://cointelegraph.com/news/mara-purchases-6-474-bitcoin-convertible-notes-offering">had acquired 6,474 BTC</a> for a total holding of approximately 34,797 BTC.
On Dec. 9, the same day as Riot’s announcement, MicroStrategy said it <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/microstrategy-purchases-21500-bitcoin-at-peak-prices" rel="null" target="null" text="null" title="null">had acquired 21,550 BTC</a> for $2.1 billion between Dec. 2 and 8, paying an average price of $98,783 per BTC. 
“I’m sure I’ll be buying Bitcoin at $1 million a coin,” MicroStrategy co-founder and former CEO Michael Saylor said.
Magazine:&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-dominance-crypto-predictions-bull-run-benjamin-cowen-hall-of-flame/" rel="null" target="null" text="null" title="null">Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame</a>
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Riot Platforms raising $500M to buy Bitcoin amid price surge

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Cointelegraph

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