Bitcoin mining and digital infrastructure company Riot Platforms, Inc., announced Monday that it plans to raise $500 million from senior convertible note sales. The firm explained that the offering would occur via a private offering. The cash raised will be injected into its BTC stash. This move further portrays the mining firm’s belief in the pioneer crypto as a long-term investment strategy.
Riot to Raise Cash
Per the announcement, in compliance with Rule 144A under the Securities Act of 1933, the digital firm will offer the senior notes exclusively to individuals reasonably believed to be institutional investors.
Noting that the convertible notes are subject to market conditions, Riot Platform hopes to offer up to $75 million in aggregate principal amount of notes to early birds who purchase the notes within the first three days from the date of issuance.
Moreover, the mining company emphasized that the notes will be due by January 15, 2030. However, depending on certain circumstances not revealed, Riot retains the right to redeem all or any portion of the notes starting January 20, 2028.
Suppose Riot Platforms decides to redeem less than all the outstanding notes. In that case, a minimum of $50 million aggregate principal amount of the Notes will be left outstanding and not subject to redemption before the stipulated redemption date.
Meanwhile, data found on Bitbo.io reveals that as of September 12, 2024, Riot Platforms had a total Bitcoin holding of 10,019 BTC. At the time of writing, the Colorado-based mining company currently holds 11,425 BTC, worth over $1 billion.
More Bitcoin Buyers
Riot Platforms is not the only institution showing unswerving loyalty to Bitcoin. Other institutional investors like MicroStrategy have solidified their position as a top player in the Bitcoin purchase game. In November alone, the business intelligence company allocated $13 billion to acquire BTC.
With a total holding of 402,100 Bitcoins, Michael Saylor intends to transform MicroStrategy into a trillion-dollar company and become the world’s leading Bitcoin bank.
