Riot Platforms Expands Bitcoin Portfolio to Over 17,000 BTC on Convertible Debt Proceeds
Riot Platforms has significantly increased its bitcoin reserves after deploying funds raised through a recent convertible senior notes offering. On Monday morning, the company announced the purchase of an additional 667 BTC at an average cost of $101,135 per coin. This latest move brings Riot’s total bitcoin holdings to 17,429 BTC, with the company estimating their current value at $1.8 billion, based on a prevailing market price of $103,873 per bitcoin.
Earlier this month, Riot had already tapped a portion of the net proceeds from its $594 million, 0.75% coupon convertible bond issue to acquire 5,117 BTC between December 10 and December 12. Combined with the new purchase, these transactions have noticeably bolstered Riot’s digital asset holdings as it navigates a changing market environment.
Riot’s stock (NASDAQ: RIOT) was down 25% for the year, reflecting industry-wide challenges that followed the latest Bitcoin halving event in April. However, momentum appears to be turning. Investor sentiment received a boost after a December 12 Wall Street Journal report revealed that activist hedge fund manager Starboard Value had taken a stake in Riot. The hedge fund aims to leverage some of Riot’s mining infrastructure for hyperscalers, a shift that could diversify revenue streams.
Market enthusiasm surrounding this strategic direction helped push the company’s shares up more than 20% over the past five trading days. On Monday, Riot’s stock rose by 7.4% in the first hour of trading, hovering around $13.95 at the time of publication.
Riot noted that, factoring in these acquisitions and ongoing production, its year-to-date BTC yield per share has reached 37.2%. The company’s decision to hold bitcoin on its balance sheet appears to align with a broader trend of traditional players embracing digital assets.
“Once seen as a niche move by crypto-native firms, holding bitcoin as a treasury asset is now picking up steam,” Nathan McCauley, CEO and co-founder of Anchorage Digital, previously told The Block. “As the market evolves and trust in digital assets grows, more publicly traded companies are likely to explore bitcoin as a strategic reserve.”