Tag: Bitcoin News

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.

Publicly traded company MicroStrategy has purchased 21,550 BTC for approximately $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion. With this big buy, the company now boasts over 2% of the Bitcoin supply.

MicroStrategy Purchases 21,550 BTC

According to the company’s official filing with the Securities and Exchange Commission (SEC), MicroStrategy entered into a sales agreement in October. This agreement allows the company to issue and sell shares of its class A common stock with an aggregate offering price of up to $21 billion. The sales further enabled the firm to fund its recent Bitcoin purchases, including the latest acquisition.

It’s worth noting that MicroStrategy’s CEO, Michael Saylor, has been a strong advocate for Bitcoin, and the company’s investment strategy has been focused on accumulating the pioneer crypto. While commenting on the latest purchase, the firm’s executive chairman expressed that its BTC yield has reached 43.2% quarter-to-date (QTD) and 68.7% year-to-date (YTD).

Meanwhile, a few days before the purchase announcement, the Bitcoin Maximalist, Saylor, suggested via an X post that the United States sell its $500 billion gold reserve and invest in a strategic Bitcoin reserve, mirroring El Salvador’s approach. He believes the move would benefit the U.S. economy and solidify its position as a financial innovation leader.

Interestingly, the company’s latest move marks its fifth consecutive week of Bitcoin purchases, following last week’s acquisition of 15,400 BTC for $1.5 billion at an average price of $95,976 per BTC.

BTC Garners More Attention

As the world’s first and largest crypto, coupled with the recent surge in value, BTC has gained more attention lately with other firms investing in the digital asset. Today, the Bitcoin miner Riot announced plans to offer $500 million in convertible senior notes to invest in bitcoins. As more firms invest in BTC, the crypto will likely continue to gain traction and attention.

As Bitcoin’s popularity and value continue to rise, it has also drawn the attention of critics. Peter Schiff, a former U.S. Senate candidate from Connecticut, has labeled Bitcoin “public enemy number one,” likely referring to the BTC reserve initiative backed by Donald Trump and other prominent figures in the Republican Party.

In a new filing by the National Center for Public Policy Research (NCPPR), shareholders at American-based multinational technology company Amazon proposed that the tech giant should consider adding Bitcoin to its treasury holdings.

According to NCPPR, a self-acclaimed think tank in the United States, the proposal recommends that Amazon consider allocating at least 5% of its treasury holdings to Bitcoin.

Although Bitcoin is a highly volatile asset, the NCPPR argued that Amazon’s stock has also experienced volatility in the past, and therefore adding the pioneering digital asset to the tech firm’s treasury holding is in the “best long-term interest of shareholders.”

In a similar development, holding Bitcoin as a hedge against inflation raised dust between Microsoft’s leadership board and its shareholders. Both parties were required to vote for or against investing at least 1% of their total assets in Bitcoin.

Amazon to Rub Shoulders With MicroStrategy

Per today’s filing, the proposal compels Amazon to borrow a leaf from business intelligence company MicroStrategy. NCPPR compared Amazon’s stock value to that of MicroStrategy, whose stock outperformed Amazon’s by 537% in 2023 because the Bitcoin-loving firm holds Bitcoin on its balance sheet.

Meanwhile, with $585 billion in total assets, Amazon has $88 billion in cash, U.S. government bonds, corporate bonds, cash equivalents, and marketable securities, of which cash is “constantly being debased.” The proposal adds, “Amazon isn’t adequately protecting billions of dollars of shareholders’ value simply by holding these assets.”

MicroStrategy Takes Lead

Institutional and corporate firms holding Bitcoin are gradually becoming the norm, with MicroStrategy as their leader. The business intelligence company recently solidified its stance on Bitcoin by acquiring large amounts of Bitcoins throughout the year, bringing its total Bitcoin holdings to over $40 million in value.

As Bitcoin continues to gain ground as a global financial asset, MicroStrategy plans to raise $2.6 million from senior convertible notes to accumulate more Bitcoins.

Bitcoin, the leading cryptocurrency by market capitalization, has ignited new debate as Peter Schiff, an American stock broker, financial commentator, and radio personality. He is the CEO and chief global strategist of Euro Pacific Capital Inc. and claims that Bitcoin (BTC) represents a national security risk to the United States.

According to an X post, Schiff noted that BTC is the public’s number one enemy, and government officials lavish public funds to purchase the crypto asset. 

“Bitcoin has become a national security threat. It’s one thing when private citizens voluntarily waste their money buying Bitcoin. But it crosses the line when they bribe government officials to squander the public’s money buying it. Bitcoin is now public enemy number one,” says Schiff.

Schiff Criticizes BTC as a National Security Risk

The Bitcoin critics and former US Senate candidate from Connecticut likely alluded to the crypto strategic asset reserve initiative backed by Donald Trump and prominent figures in his faction of the Republican Party.

While addressing the Bitcoin Conference in July and campaigning for a second term in the White House, the president-elect declared, “If I am re-elected, my administration’s policy will ensure that the United States retains 100% of all Bitcoin currently held or acquired by the government moving forward.”

Trump also told the attendees at the conference in Nashville, Tennessee, never to sell their bitcoins. Meanwhile, Trump was the first presidential candidate to accept Bitcoin donations for his campaign.

Wyoming Senator Cynthia Lummis also proposed that the US government should actively accumulate more bitcoin to establish a strategic BTC reserve fund. In contrast, Schiff contends that Bitcoin poses a significant threat to America’s interests.

BTC as Top Reserve Asset

The global hedge fund strategist’s statement came amid increasing global interest in Bitcoin and other cryptocurrencies, with many investors, institutions, and even countries exploring their potential.

On October 30, Florida Chief Financial Officer Jimmy Patronis (CFO) pushed to include BTC in state pension funds. If implemented by the State Board of Administration (SBA), Florida will join a growing number of American states like Wisconsin and Michigan, which have added crypto assets to their portfolios.

Amazon’s (AMZN) shareholders also recently urged the company to invest at least 5% of its assets in Bitcoin. If approved, Amazon will join MicroStrategy in diversifying its reserves into BTC. 

Meanwhile, the crypto asset is changing hands at above $94,400 after hitting and surpassing the $100,000 mark, fueling optimism for institutional and retail investors.

Brokerage firm Bernstein has predicted that bitcoin (BTC) will replace gold as the dominant store of value over the next decade. Analyst Gautam Chhugani noted that Bitcoin’s swift growth was driven by enthusiasm about potential U.S. policy changes under a possible Trump leadership.

Bitcoin Compared to Gold

Over the years, institutions and investors have predicted that Bitcoin will surpass gold as a dominant store of value. According to an industry leader, Brendan Blumer, CEO of Block.one., BTC could replace gold as a leading store of value by 2039, highlighting its long-term potential.

While certain experts highlight Bitcoin’s potential to compete with gold, others underscore its distinct attributes. Gil Luria of D.A. Davidson characterized Bitcoin as an asset with minimal correlation to inflation and strong appreciation potential, setting it apart from gold. He explained that Bitcoin’s value is primarily influenced by its growing adoption and integration rather than conventional economic indicators.

Meanwhile, BTC reached an impressive high of over $103,000 earlier today. However, the crypto market has experienced a slight pullback, and the asset is currently trading at over $99,200.

The $100,000 peak fueled confidence in both institutional and retail investors, who added profits to their portfolios as the crypto asset achieved a remarkable 41% annual increase.

Luria also noted that Bitcoin requires substantial progress before it can serve effectively as a widely used medium of exchange and a reliable unit of account. Adding to the parallels drawn between Bitcoin and gold, Federal Reserve Chair Jerome Powell offered his viewpoint during the New York Times DealBook Summit on Wednesday, where he referred to Bitcoin as “digital gold,” categorizing it as a speculative investment distinct from the U.S. dollar.

Altcoins and Stocks Ride the Wave

Bitcoin’s surge has boosted the prices of various crypto assets and related stocks. Ether (ETH) rose to $3,944 on Thursday, approaching its March peak of $4,090. However, it remains below its record high of $4,890, achieved in November 2021. The crypto asset was exchanging hands at over $3,800.

Meanwhile, Leading the charge among Bitcoin mining companies, Bitdeer (BTDR) surged by 17%, with Hut 8 (HUT) and CleanSpark (CLSK) both recording gains of approximately 10%. Riot Platforms (RIOT) climbed more than 8%, while Marathon Digital (MARA), Iris Energy (IREN), and Bit Digital (BTBT) saw increases ranging from 5% to 7%.