Riot Platforms Announces $500M Convertible Notes Offering for Bitcoin and Corporate Use

Riot Platforms, Inc. has announced plans to raise $500 million through a private offering of convertible senior notes.

Riot Announces Proposed Private Offering of $500 Million of Convertible Senior Notes.

Net proceeds from this offering to be used primarily to acquire bitcoin and for general corporate purposes.

Link to press release: https://t.co/z7xQaB9eC4.
— Riot Platforms, Inc. (@RiotPlatforms) December 9, 2024

The proceeds are earmarked for Bitcoin acquisitions and general corporate purposes, with the offering aimed at qualified institutional buyers.

Key Details of the Offering

The notes will be unsecured senior obligations maturing on January 15th, 2030.

Investors may also have the option to purchase up to an additional $75 million in notes within three days of the initial issuance.

Terms such as the conversion rate and pricing will be determined at the time of the offering. The notes may be converted into Riot common stock, redeemed, or settled in cash, as decided by the company.

Bitcoin Holdings and Production

At the end of the third quarter, Riot held 10,427 Bitcoin after mining 1,104 Bitcoin during the quarter.

This represents an increase from the 844 Bitcoin mined in the previous quarter. The company has stated its intent to use the funds raised to further increase its Bitcoin reserves.

Industry Context

Data from The Miner Mag shows that seven other publicly traded Bitcoin miners and data centers have collectively raised $5.2 billion through convertible bond offerings since June.

Notably, 70% of these funds were secured in the four weeks leading up to December 5th, highlighting the trend of using convertible notes for expansion in the sector.

Riot’s offering aligns with this industry trend as companies leverage rising Bitcoin prices and favorable market conditions to fund growth.

The completion and terms of the offering will depend on market dynamics and investor demand.