Source: Blockchain Knights

BTC miner Riot Platforms successfully completed a $525 million senior note offering, according to a document filed with the U.S. Securities and Exchange Commission on December 11.

These notes will mature in 2030, have an interest rate of 0.75%, and are privately issued to institutional investors.

The notes contain provisions for conversion into shares of Riot common stock beginning in 2029, with the possibility of earlier conversion under certain conditions outlined during the issuance process.

The funds raised this time will be mainly used for the company’s BTC acquisition strategy to further expand the large amount of BTC it already holds.

Prior to this strategic move, Riot recently acquired 705 BTC for $68.45 million.

With this latest investment, the company’s total BTC reserves have reached 12,000, which is worth approximately US$1.2 billion based on current market prices.

This makes Riot the second largest BTC holder among listed mining companies, behind Marathon Digital, which currently holds more than 40,000 BTC.

This aggressive expansion strategy mirrors those of other similar businesses, including Marathon Digital, which recently announced a $700 million stock offering to increase its BTC reserves.

This highlights the increasing competition among miners to accumulate BTC, as miners believe in BTC’s long-term value and huge return potential.

Although Riot’s stock price has declined recently following the initial announcement of the offering, the company remains steadfastly committed to BTC.

Riot reported a net loss of $154.4 million in the third quarter of 2024, but the company did see year-over-year revenue growth.

In addition to BTC mining, Riot is also actively exploring new growth avenues, especially in the rapidly developing fields of artificial intelligence and high-performance computing.

The company aims to leverage its extensive energy capabilities and infrastructure to attract leading technology companies to partner with it, potentially providing a lucrative new revenue stream.

Riot CEO Jason Les said on the latest earnings call: "Riot's reputation and our image of having strong power capacity are the reasons why we obtained these unsolicited large amounts of power capacity. Our interest "Hundreds of megawatts, not necessarily smaller amounts."

This diversification strategy reflects Riot's proactive approach to navigating the changing dynamic landscape of the crypto asset industry to position itself for the coming years. Prepared for continued growth and success.