Major

Bitcoin

<ul class="wp-block-list">
  
 <li>Riot Platforms raised $525M, acquiring 5,117 BTC, boosting total holdings to 16,728 BTC.</li>   
 <li>Riot's $525M offering will fund Bitcoin acquisitions and corporate growth initiatives.</li>   
 <li>Stock volatility follows Riot's bond offering, raising concerns about share dilution and higher debt.</li> 
</ul>   
<p>Riot Platforms has successfully<a href="https://x.com/RiotPlatforms/status/1867570759704420356" target="_blank" rel="noreferrer noopener"> issued $525 million</a> convertible senior notes as disclosed on Dec 12, 2024. These notes have an annual interest rate of 0.75% and are due to mature on January 15, 2030. Riot also provided the initial purchasers with the right to purchase an additional $75 million in notes. The company increased the aggregate amount from its original $500 million plan.</p>   
<h2 class="wp-block-heading" id="h-details-of-the-convertible-notes-offering"><strong>Details of the Convertible Notes Offering</strong></h2>   
<p>The convertible senior notes are subordinated and also the senior securities of Riot. Interest will be paid semi-annually strictly on a 15th January and 15th July basis. However, Riot can only redeem the notes for cash as per certain conditions if it does so after January 20, 2028. The notes are optionally convertible into cash, riot’s common stock or a combination of both. This is in accordance with Riot's preferences.</p>   
<p>However, it is converted best at an initial conversion rate of 67.2767 shares for each $1,000 principal amount to arrive at a conversion price of $14.86 per share. This price is actually 32.5% more than Riot’s current stock price at today's close price.</p>   
<h2 class="wp-block-heading" id="h-increase-in-bitcoin-holdings-and-stock-movements"><strong>Increase in Bitcoin Holdings and Stock Movements</strong></h2>   
<p>Riot Platforms acquired 5,117 Bitcoins at an average price of $99,669 per Bitcoin, including transaction fees. This acquisition increased Riot's Bitcoin holdings to 16,728 BTC. These are now valued at approximately $1.68 billion, based on the current market price of <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noreferrer noopener">$100,883</a> per Bitcoin.</p>   
<p>Riot's stock showed mixed reactions after the announcement. The <a href="https://finance.yahoo.com/quote/RIOT/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAMwqJoMMRmsL21hdsGm4Xo_KTK5pE3qoUjTxqw-mjQ_n1f9W0c7BwMaDkCD55EoHLv8CrFc57jDhxHsGK35fAyEnH_rI6XbnI-SJb7lfmArKVlSY7D9uk8englKhDarofVlsLFGe33OxVvtbNy2sFNGrzNfg8soNy2Vnzv661nbJ" target="_blank" rel="noreferrer noopener">stock rose</a> slightly by 0.63%, reaching $11.45. However, it fell by 13.44% the previous day, closing at $11.81. Such offerings can lead to concerns about share dilution and higher debt, which can cause stock volatility. Riot experienced similar stock movements in 2022 after a previous offering, but the company rebounded and used the funds to expand its Bitcoin mining operations.</p>   
<h2 class="wp-block-heading" id="h-planned-use-of-proceeds-for-growth"><strong>Planned Use of Proceeds For Growth</strong></h2>   
<p>Riot Platforms estimates that it will be able to generate net proceeds of about $511.5 million after considering the expenses for the offering. However, if the note offering option up to $75 million is taken, the total net proceeds will<a href="https://cryptonewsland.com/riot-platforms-to-issue-500-million-in-convertible-notes-for-expansion/" target="_blank" rel="noreferrer noopener"> rise</a> to about $584.6 million. The company, Riot, intends to apply most of the money towards the purchase of Bitcoin. The remaining amount shall be used for other corporate purposes in its strategic development processes.</p>   
<p>The company’s strategy is to expand further its role in the industry by buying and investing in Bitcoins. Riot has emerged as one of the major players in this space and is now aiming at increasing its Bitcoin holdings.</p> 
<p>The post <a href="https://cryptonewsland.com/riot-increases-btc-reserves-to-16728-following-major-525m-investment/">Riot Increases BTC Reserves to 16,728 Following Major $525M Investment</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Riot Increases BTC Reserves to 16,728 Following Major $525M Investment

Table of Contents

Crypto News Land

Other articles published on Dec 13, 2024

Australian Pension Fund Makes Rare Bitcoin Futures Investment

Crypto can’t thrive on VCs and FOMO forever | Opinion

XRP Goes Live on Yet Another Exchange

Crypto Market Faces Volatility as Key Options Contracts Expire

We Asked ChatGPT If Ripple (XRP) Could Overtake Ethereum (ETH) This Cycle, and the Answer Is a Wa...

LINK and AAVE Prices Soar as World Liberty Financial Invests Big in Crypto

Join our free newsletter for daily crypto updates!