Riot Platforms Shares Fall Despite Bitcoin Purchase Plan
Despite announcing a strategic Bitcoin purchase plan, Riot Platforms’ shares fell nearly 10%.
- Shares dropped by 7.1% to $12.03 at market opening on Dec. 9
- Reflecting a broader decline in crypto-related equities such as Coinbase, Marathon Digital, and CleanSpark
This contrasts with the broader crypto market’s upward trend, where Bitcoin’s price rose by 0.33% in the past 24 hours to trade at $99,940 as of press time. However, Riot’s last price was marked at the close of after-hours trading on Friday, while Bitcoin trades 24/7. The decline in crypto equities this morning reflects, in part, the price disparity created during weekend trading.
Bitcoin Acquisition Plans
Riot Platforms plans to raise $500 million through a convertible senior notes offering to fund Bitcoin acquisitions and other corporate needs.
- Privately offering notes to institutional investors under Rule 144A of the 1933 Securities Act
- Buyers will have a three-day option to purchase up to $75 million in additional notes
- Notes are unsecured senior obligations and will mature on Jan. 15, 2030
- Not holders can convert them into Riot’s common stock or a combination of cash and shares upon maturity
The company said it intends to use the proceeds to acquire additional Bitcoin for general corporate purposes.
Peer Comparison
Marathon Digital recently announced plans to raise $700 million through a similar private offering to bolster its Bitcoin reserves and fund corporate initiatives.
- Pierre Rochard, the company’s Vice President of Research, highlighted Riot’s capacity to bridge fixed-income investments with Bitcoin’s unique market conditions
- Riot holds 11,425 BTC, making it the third-largest publicly traded corporate Bitcoin holder
