Bitcoin mining company Riot Platforms has increased its Bitcoin holdings by adding more than 5,000 coins in the past few days. This large purchase came on the back of reports that the mining company was under pressure from activist investor Starboard Value.
How much Bitcoin does Riot Platforms currently have?
On Friday, December 13, riot pads Announce It purchased approximately $510 million worth of BTC between December 10 and December 12. According to the post on X, the cost of the latest purchase was set at approximately $99,669 per BTC, including fees and other expenses.
The latest acquisition was made with the net proceeds from the offering of Riots’ 0.75% convertible bond issue due 2030 and its cash reserves. This brings the Bitcoin mining company’s holdings to 16,728 Bitcoin, worth approximately $1.68 billion.
Interestingly, this BTC purchase comes after a disappointing Q3 performance for Riot Platforms. The mining company posted a net loss of $154.4 million in the third quarter, due to rising costs and unrealized investment losses.
With Riot’s recent net proceeds of US$525 million and the issuance of convertible bonds with a coupon of 0.75%, the company acquired 5,117 bitcoins at an average price of US$99,669 per bitcoin, including fees and expenses. As a result, Riot has increased its holdings to 16,728 Bitcoin, which is currently valued at… pic.twitter.com/Fi6x5hnNDR
— Riot Platforms, Inc. (@RiotPlatforms) December 13, 2024
Riot Platforms purchasing such a large amount of Bitcoin in a short period underscores the level of institutional adoption the cryptocurrency market will see in 2024. With other companies like MicroStrategy also increasing their Bitcoin holdings, the market has received significant attention from major investors this year. year.
Unsurprisingly, Riot’s stock price (with symbol RIOT) rose more than 7% to about $13.28. As observed with MicroStrategy (MSTR) stock, institutions that continually expand their Bitcoin holdings tend to see a reversal in their stock prices, especially as the price of BTC continues to rise.
As of this writing, Bitcoin’s price is around $101,257, reflecting a 1% increase over the past 24 hours. According to CoinGecko data, the leading cryptocurrency fell by about 2% in the past week.
Why did Riot buy Bitcoin?
As previously inferred, the recent BTC acquisition by Riot Platforms follows the news that activist investor Starboard Value has purchased a stake in the company. According to Wall Street JournalStarboard encouraged the Bitcoin mining company to reinvent some of its Bitcoin mining capabilities to serve artificial intelligence models. Buying the world’s largest cryptocurrency appears to be one of the best ways for Bitcoin miners to please their investors.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.