Riot Platforms Buys 5,117 Bitcoin After Raising $525 Million

Riot Platforms Expands Bitcoin Holdings to 16,728 BTC

Riot Platforms, a publicly traded Bitcoin mining firm, has purchased an additional 5,117 Bitcoin (BTC) after raising $525 million through a private senior convertible notes offering. This move aligns with the company’s ongoing strategy to acquire Bitcoin and fund other corporate activities.

Riot’s Bitcoin Purchase and Current Holdings

On Friday, Riot, based in Castle Rock, Colorado, announced that it spent $510 million to buy the 5,117 BTC at an average price of $99,669 per coin, including fees. As of now, the firm holds a total of 16,728 BTC, valued at approximately $1.69 billion at the current Bitcoin price of $101,170, according to CoinGecko.

Riot Follows the MicroStrategy Strategy

Riot Platforms joins a growing number of Bitcoin miners and companies using a strategy similar to that of MicroStrategy, the software company that began acquiring Bitcoin in 2020 during the COVID-19 pandemic. MicroStrategy’s success in building a Bitcoin treasury reserve has inspired other firms to adopt similar tactics. Currently, MicroStrategy holds 423,650 BTC, valued at nearly $43 billion.

In addition to holding Bitcoin as a reserve asset, MicroStrategy uses private offerings and debt to acquire more BTC, offering investors a way to gain exposure to Bitcoin without directly purchasing the cryptocurrency. This approach is increasingly being adopted by companies to strengthen their balance sheets and hedge against inflation.

Marathon Digital Joins the Bitcoin Mining Trend

Following the same strategy, Marathon Digital (formerly known as MARA) announced on Tuesday that it had bought 11,774 BTC for $1.1 billion at an average price of $96,000 per coin. This move further solidifies the trend among major Bitcoin miners to use Bitcoin as a strategic asset for their financial growth.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.