As a seasoned researcher with a keen eye for trends and a knack for predicting market movements, I find the recent moves by companies like Riot Platforms to fund Bitcoin purchases through debt securities an intriguing development. The strategy, pioneered by Michael Saylor of MicroStrategy, seems to be gaining traction among businesses, particularly in the Bitcoin mining sector.
Bitcoin infrastructure company, Riot Platforms, has suggested the idea of selling debt securities as a means to acquire Bitcoins and cover various business expenses, which they refer to as “general corporate purposes.
Riot Platforms unveiled their intention to provide $500 million in convertible senior notes, exclusively available for purchase by accredited institutional investors through a private offering. Additionally, there’s an opportunity for investors to secure an extra $75 million within three days after the initial investment if they choose to exercise this option.
Convertible notes are financial tools that provide the right to purchase shares to buyers. These buyers can opt to transform these notes into equity shares of a publicly-traded company if it happens.
According to a statement released on December 9th, Riot plans to utilize the funds raised from this sale to purchase more Bitcoin (BTC).
$RIOT is a company on the #Bitcoin Standard.
— Michael Saylor⚡️ (@saylor) December 9, 2024
Notes to Bitcoin trend
Colorado-based Riot has joined other companies in supporting Bitcoin investments by offering shares. Similarly, Bitcoin miner Marathon Digital Holdings boosted its bond sale to $850 million, with an additional $150 million option, on December 3, taking its total Bitcoin holdings above $3.3 billion.
The substantial amount of around $45 million in Bitcoin is managed by the Japanese financial titan, Metaplanet, primarily through the sale of shares to secure funds, or in simpler terms, Metaplanet, a significant Japanese investor, has amassed roughly $45 million worth of Bitcoin, mainly funded by selling stocks.
The international research center known as The National Center for Public Policy Research suggested that Amazon, founded by Jeff Bezos, consider holding Bitcoin as part of its financial reserves. Furthermore, Changpeng ‘Cz’ Zhao, founder of Binance, expressed his agreement with this idea, emphasizing that not only should Amazon store Bitcoin, but it should also enable Bitcoin payments for customers.
Companies such as SOS Limited from China and Genius Group have followed the idea of raising debt capital through securities, which was pioneered by Michael Saylor, the founder of MicroStrategy.
Saylor, a crypto-skeptic turned Bitcoin advocate, has asserted that BTC will capture greater portions of global cash reserves in the coming years. MicroStrategy’s executive chairman and other BTC supporters have also pressed U.S. authorities to create a strategic national Bitcoin reserve.
It’s been noted by experts that the competition for the decreasing supply of Bitcoin among various nations may have already begun, with heightened interest following the U.S. elections and the incoming presidency of Donald Trump, who is known to be favorable towards Bitcoin.
Read More
- AI16Z PREDICTION. AI16Z cryptocurrency
- Crypto ETPs hit $44.5b in YTD inflows amid Bitcoin surge
- POL PREDICTION. POL cryptocurrency
- Hong Kong Treasury says crypto is not a ‘target asset’ for its Exchange Fund
- Li Haslett Chen to Leave Warner Bros. Discovery Board
- ‘Kraven the Hunter & ‘Madame Web’ Box Office Disaster Blamed on Media Scrutiny
- EXCLUSIVE: Alia Bhatt in talks with Dinesh Vijan for a supernatural horror thriller; Tentatively titled Chamunda
- Shiba Inu, Bonk, Pepe prices rebound: Beware of dead cat bounce
- Crypto x AI makes up just 1% of crypto market cap, says analyst
- Blockaid new dashboard to track Web3 activity and threats
2024-12-09 19:18