North American Bitcoin mining firm Riot has added to its bitcoin holds by acquiring an additional 5,117 BTC. Notably, the company spread its latest purchase within three days, from December 10 to December 12, 2024, to obtain the crypto at varied prices due to the volatile nature of the market.
Concluding the purchase, Riot holds 16,728 BTC valued at $1.67 billion by bitcoins spot price of $100,000.
5,117 BTC Bagged
Despite being a miner and hodling its mining rewards, Riot has taken steps to increase its stash by acquiring BTC from the open market. According to the U.S. Securities and Exchanges Commission’s (SEC) release, the firm spent approximately $510 million to acquire its latest bitcoins at an average price of $99,669 per coin, including trading fees and expenses.
To raise funds for its just-concluded purchase, Riot offered about $500 million in convertible notes to qualified institutional investors, due 2030, with just 0.75% interest. Its purchase was announced about four days after the notes were sold.
Riot’s adoption of a BTC reserve has helped it stay in operation despite the slash in mining rewards from the Bitcoin halving earlier this year, which threw many low-class miners out of the game as they couldn’t meet the energy cost and other operation expenses.
Miners BTC Reserve
Remarkably, Riot is not the only miner who has adopted a strategic Bitcoin reserve. Marathon Digital, a famous American-based bitcoin miner, also fully adopted BTC as its reserve asset earlier this year and has periodically acquired the crypto from the open market since then.
Concluding its last purchase, Marathon acquired 5.771 BTC and now holds about 33,875 BTC, more than double Riot’s holdings. It is valued at almost $3.4 billion.
Similarly, the Bitcoin miner Cathedra suspended its mining operations and switched to a data center development. Using profits from its new business, it acquired more BTC from the market to ensure that it kept up with investors’ expectations.
Meanwhile, MicroStrategy, the world’s first Bitcoin company, now holds over 2% of the total Bitcoin supply and has secured about $40 billion in unrealized profits.
