Riot Platforms Sets Sights on More BTC with $500M Fund
Bitcoin mining heavyweight Riot Platforms has revealed its intention to issue $500 million in convertible notes, with the proceeds largely going toward purchasing Bitcoin.
Bitcoin mining heavyweight Riot Platforms has revealed its intention to issue $500 million in convertible notes, with the proceeds largely going toward purchasing Bitcoin.
Riot’s official statement confirms that its convertible notes will be offered under Rule 144A of the U.S. Securities Act, available to qualified institutional investors. The primary purpose of this issuance is to secure additional Bitcoin and address corporate priorities.
Increasingly, mining companies are turning to convertible note offerings to grow their cryptocurrency reserves. This dual-purpose strategy ensures access to capital for operational growth and facilitates direct investment in Bitcoin.
Riot Platforms Mining Infrastructure. Source: riotplatforms.com
MARA Holdings Inc., a leading Bitcoin mining company, announced on December 2, 2024, plans to issue $700 million in convertible senior notes, aiming to secure more BTC.
Related: How BTC Can Strengthen the U.S. Economy: MARA Holdings’ Vision
Why Are Convertible Notes a Go-To Choice for Bitcoin Miners?
For mining companies, convertible notes are a fast and efficient way to secure funding. These debt instruments can either be converted into shares or traded freely, offering liquidity without the regulatory delays associated with traditional fundraising. They also preserve the issuer’s valuation, making them an appealing choice for capital expansion.
This wave of activity in the debt market could lend strength to Bitcoin’s long-term value, as growing institutional demand puts upward pressure on prices while emphasizing the asset’s scarcity.
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