Riot upsized Bitcoin holdings by $69m

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As a seasoned analyst with over two decades of experience in the financial market, I find the strategic moves by Riot Platforms to be both intriguing and prudent. Having witnessed the evolution of Bitcoin from its infancy to becoming a significant player in the global financial landscape, I appreciate the vision and boldness exhibited by Riot in their approach.

Leading Bitcoin mining company, Riot Platforms, boosted its holdings by acquiring approximately $69 million of Bitcoin, the world’s foremost digital currency.

Based on SEC filings, it’s been reported that Riot Platforms purchased 667 Bitcoins (BTC), which now totals their crypto holdings to 17,429 BTC. They acquired this amount at an average price of approximately $101,135 per coin, making the total value of their Bitcoin balance roughly $2 billion when Bitcoin’s price peaked at $106,000 on December 16.

In 2018, the company started mining Bitcoins at its Oklahoma location as a new business direction. Motivated by MicroStrategy’s Chairman Michael Saylor’s “sell stocks, buy BTC” plan, Riot broadened its strategy to involve Bitcoin acquisitions and share repurchases, thereby increasing its cryptocurrency holdings.

Through integrating mining activities with shrewd market acquisitions, Riot has significantly boosted its Bitcoin returns. This performance indicator compares Bitcoin holdings to the effect of issuing more shares. Starting from the fourth quarter, Riot has managed a BTC return of 36.7%, and year-to-date, this figure stands at 37.2%.

Regardless of continuing discussions about the method initiated by Saylor, mining companies such as Riot and other corporations are progressively providing stock shares to secure funds for Bitcoin acquisitions, although not as vigorously as MicroStrategy has done so.

In a recent development, Riot has successfully completed a $594 million sale of convertible bonds, utilizing the funds primarily to purchase additional Bitcoin. Similarly, Marathon Digital, another Bitcoin miner, has followed suit by selling senior notes to raise cash and subsequently acquire Bitcoin.

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2024-12-16 18:49