Bittime - Riot Platforms managed to raise $525 million (around IDR 8.4 trillion) to buy more Bitcoin. Check out the complete explanation in this article.
Riot Platforms, the company known as the second largest Bitcoin miner in the world has just completed an offering of a senior note worth $525 million (around IDR 8.4 trillion), which will be used to strengthen their Bitcoin acquisition strategy.
This move is a clear signal that Riot is committed to continuing to expand their Bitcoin holdings, even though the market is in a fluctuating phase.
Riot Platforms now plans to increase the number even further. In its announcement on December 11, 2024, Riot stated that the proceeds from this offering would be used to purchase more Bitcoin.
This purchase focuses on expanding Bitcoin wallet which has recorded a value of more than $1.2 billion (around IDR 19.2 trillion) at current market prices.
Riot Platforms Bitcoin Purchase
Riot's Bitcoin acquisition strategy does not only include direct purchases through the marketplace. However, they also show that they are ready to invest large funds to acquire more BTC.
Recently, Riot bought 705 Bitcoin worth $68.45 million (around IDR 1.1 trillion), bringing their total Bitcoin holdings to approx 12.000 BTC.
This makes Riot the second largest holder of Bitcoin among public mining companies, second only to Marathon Digital which currently holds more than 40.000 Bitcoin.
With senior note offering Today, Riot shows their intention to continue accumulating Bitcoin, despite several challenges in the market. The decision to raise such a large amount of funding also reflects the company's confidence in Bitcoin's long-term potential.
In addition, in the SEC note released, it is stated that this bond will mature in 2030, with interest of only 0.75%, a condition that is quite attractive for institutional investors.
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Why is Riot So Confident in Bitcoin?
Riot's move to purchase large amounts of Bitcoin follows in the footsteps Marathon Digital and other large companies that continue to add to their Bitcoin reserves.
There is a strong belief among Bitcoin miners that this digital asset has the potential for significant value growth in the future. Even so, there will still be continued volatility in the market.
In a recent interview, Jason Les, CEO of Riot Platforms, revealed that the company is constantly looking for ways to expand their power capacity, which is currently attractive to leading technology companies.
Riot is not only focused on Bitcoin mining, but is also exploring new opportunities in the field high performance computing And artificial intelligence (AI), which is expected to open up new sources of income.
This shows that even though Riot is investing heavily in Bitcoin, they also want to optimize their infrastructure and energy capacity to achieve wider profits.
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Diversification Riot Platform After Losing IDR 2 Trillion
Even with these aggressive steps, it doesn't mean that Riot's journey has been without obstacles. In the third quarter of 2024, Riot reported net loss of $154.4 million (around IDR 2.47 trillion).
However, the company remains optimistic, with annual revenue continuing to show improvement. They also recorded stable growth even though the crypto market experienced a significant price correction.
Seeing the ever-changing market dynamics, Riot Platforms understands the importance of diversification. Diversification This is part of Riot's long-term strategy to survive amidst crypto market challenges.
Using existing resources, Riot plans to continue exploring other sectors that have the potential to provide long-term profits, while continuing to expand their Bitcoin reserves.
FAQ Abut Riot Platforms
What is Riot Platforms?
Riot Platforms, Inc, together with its subsidiaries, operates as a bitcoin mining company in North America. The company operates through three segments: Bitcoin Mining, Data Center Hosting, and Engineering.
Who Owns Riot Platforms?
According to the latest TipRanks data, around 58.41% of Riot Platforms (RIOT) shares are owned by retail investors. Vanguard owns the most shares of Riot Platforms (RIOT).
How Big is the Market Capitalization of Riot Platforms (RIOT)?
On December 6, 2024, Riot Platforms' stock price will be $12.95. Its current market capitalization is 4.3 billion US dollars with 332 million shares.
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Reference
Cryptoslate, Riot Platforms completes $525 million notes offering to fuel Bitcoin buying, accessed December 13, 2024.
Crypto News Flash, Riot Boosts Bitcoin Reserves with $500M Convertible Notes, accessed December 13, 2024.
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