Riot Platforms, a leading player in Bitcoin infrastructure, has acquired 705 Bitcoins for about $68.45 million in a transaction completed earlier today, according to data from Arkham Intelligence.
The transaction involved $68.26 million worth of Bitcoin, distributed across six wallets. This amount originated from five unidentified sources, with a smaller portion sent by the New York Digital Investment Group (NYDIG). This significant move further solidifies Riot’s position as the second-largest Bitcoin mining company in the world, with holdings of 10,019 Bitcoins valued at nearly $1 billion. The platform currently trails behind Mara Holdings, which leads the industry with a reserve of 40,435 Bitcoins, according to BitBo data.
The acquisition follows the company’s recent announcement of plans to raise $500 million through a convertible senior notes offering aimed at institutional investors. This offering includes a $75 million option for additional purchases. The notes are set to mature on January 15, 2030, and can be redeemed for cash under certain conditions after three years. The company disclosed that the proceeds will be used to acquire more Bitcoin and to fund general corporate initiatives.
On December 6, Riot reported on X that it mined 495 Bitcoins in November, equivalent to $48 million, averaging 16.5 Bitcoins daily. This is a slight decrease from the 505 Bitcoins mined in October 2024.
This purchase comes amidst mixed financial performance for the company. In Q2 2024, Riot reported total revenue of $70.0 million, a decline from $76.7 million during the same period in 2023. This decrease in revenue was primarily due to the Bitcoin halving event in April, which reduced block rewards for miners. Despite this challenge, Riot maintained strong gross margins, bolstered by $13.9 million in power credits, including $4.4 million from demand response programs. As a result, the company’s average direct cost to mine one Bitcoin was $25,327.
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