tl;dr
Riot Blockchain, a publicly traded Bitcoin mining firm, has purchased 5,117 Bitcoin (BTC) for $510 million, increasing its total holdings to 16,728 BTC valued at approximately $1.69 billion. The company raised $525 million through a private senior convertible notes offering to fund this acquisition ...
Riot Platforms, a publicly traded Bitcoin mining firm, has acquired 5,117 Bitcoin (BTC) for $510 million at an average price of $99,669 per coin. This purchase has increased the company's total holdings to 16,728 BTC, which is currently valued at approximately $1.69 billion. To fund this acquisition and for general corporate purposes, Riot Platforms raised $525 million through a private senior convertible notes offering. This move aligns with a broader trend among major Bitcoin miners, including MARA and MicroStrategy, who are using private offerings and debt to bolster their Bitcoin holdings as a hedge against inflation and to fortify their balance sheets.
MicroStrategy, a software company, initiated the Bitcoin treasury reserve strategy in 2020 as a response to the COVID-19 pandemic. By utilizing private offerings and debt, MicroStrategy has significantly expanded its Bitcoin holdings, currently amounting to 423,650 BTC and valued at nearly $43 billion. Encouraging other companies to invest in Bitcoin as an inflation hedge, MicroStrategy's approach has become a model for companies seeking to capitalize on the cryptocurrency's potential growth. Following suit, Riot Platforms and other prominent American Bitcoin miners are adopting this strategy to strengthen their financial positions.
In a similar move, MARA, also known as Marathon Digital, recently announced the purchase of 11,774 Bitcoin for $1.1 billion at an average price of $96,000 per coin, exemplifying the widespread adoption of treasury reserve strategies among key players in the cryptocurrency mining sector.