Riot Platforms to Raise $500M For Bitcoin Purchase

Popular Bitcoin miner Riot Platforms has announced its plans to raise $500 million to acquire more BTC. Riot noted that it intends to offer a $500 million private convertible senior notes, due in 2030. 

Riot Offers $500M Convertible Notes

As revealed in a press release, this offering is contingent upon market conditions and other relevant factors. The notes target institutional buyers who qualify under Rule 144A of the Securities Act. Riot plans to use the money from these offers to purchase BTC, aligning with the broader market optimism over the flagship crypto’s future movements.

Riot also plans to grant the initial purchasers an option to buy an additional $75 million aggregate principal amount of the notes. This is slated within three days beginning on and including the date on which the notes are first issued. 

Riot’s Strategic BTC Purchase

However, the mining giant highlighted that there is no certainty as to whether, when, or on the terms of completion. This means the offering remains subject to market and other risk conditions. 

As announced, the notes will comprise Riot’s unsecured senior obligations, which are not expected to bear interest. Depending on its choice, Riot may convert the notes into cash, MARA common stock, or both. Riot intends to use the net proceeds of this offering to buy more Bitcoin and for general corporate purposes.

Riot and Marathon Positions As Bitcoin Mining Leaders

Meanwhile, Marathon Digital, another Bitcoin mining firm, recently announced the purchase of 6,474 BTC, following a successful $1 billion convertible note offering. In October, Marathon Digital and Riot Platforms recorded their highest production figures since the April 2024 halving. 

While Riot generated 505 Bitcoin, valued at $34.4 million, Marathon mined 717 Bitcoin, equivalent to $48.8 million. 

Bitcoin’s Price Movement

Despite the miners’ optimism, Bitcoin continues to face market resilience after hitting an ATH above $100,000. As of this writing, BTC is trading at $98,184, down slightly by 1.9% in the last 24 hours. 

However, the daily trading volume increased by 79.3%, indicating investors’ bullish interest. Additionally, BTC is up 1.5% and over 29% on the weekly and monthly charts, respectively.