The mining firm Riot Platforms plans to issue $500 million in convertible senior notes, with an additional option for initial buyers to purchase $75 million more.
Riot Announces Proposed Private Offering of $500 Million of Convertible Senior Notes.
Net proceeds from this offering to be used primarily to acquire bitcoin and for general corporate purposes.
Link to press release: https://t.co/z7xQaB9eC4.
— Riot Platforms, Inc. (@RiotPlatforms) December 9, 2024
The notes are set to mature on January 15, 2020. The initial conversion rate and other terms of the offering will be determined at the time of pricing based on market conditions.
Riot has increased the principal amount of the offering to $525 million and set the interest rate at 0.75% per annum. The company expects net proceeds, after deducting offering expenses, to be approximately $584.6 million.
Riot Announces Pricing of Offering of 0.75% Convertible Senior Notes.
Link to press release: https://t.co/hblEp6vdEB.
— Riot Platforms, Inc. (@RiotPlatforms) December 10, 2024
The funds raised by Riot will be directed towards acquiring additional bitcoins and for general corporate purposes.
According to BitcoinTreasuries, the company’s cryptocurrency reserves amount to 11,425 BTC, valued at approximately $1.12 billion.
Their holdings are more than three times less than those of their competitor, MARA Holdings. The largest American public miner has already used funds from a $1 billion convertible debt offering to purchase digital gold.
In November, the company acquired 6,474 BTC for approximately $618 million, and in December, an additional 1,423 BTC as the cryptocurrency fell to $90,500.
MicroStrategy, which holds the largest corporate bitcoin reserves, increased its holdings to 423,650 BTC (approximately $41.4 billion) following the purchase of 21,550 BTC.