bitcoin mining company Riot Platforms has increased its btc holdings with the addition of over 5,000 coins in recent days. This major purchase came in the wake of reports that the miner was under pressure from activist investor Starboard Value.
How much btc does Riot Platforms currently own?
On Friday, December 13, Riot Platforms <a target="_blank" href="https://x.com/RiotPlatforms/status/1867570759704420356″ target=”_blank” rel=”noopener nofollow”>announced which had purchased approximately $510 million worth of btc between December 10 and 12. According to the post on x, the cost of this latest purchase was set at around $99,669 per btc, including fees and other charges.
The most recent acquisition was executed with the net proceeds from the offering of Riots' issuance of 0.75% convertible notes due 2030 and its cash reserves. And it brings the bitcoin miner's holdings to 16,728 btc, valued at approximately $1.68 billion.
Interestingly, this btc purchase comes after a disappointing Q3 performance from Riot Platforms. The mining company posted a net loss of $154.4 million in the third quarter, as a result of rising costs and losses on unrealized investments.
<blockquote class="twitter-tweet”>
With the net proceeds from Riot's recent $525 million 0.75% coupon convertible bond issuance, the Company acquired 5,117 btc at an average price of $99,669 per btc, including fees and expenses. As a result, Riot has increased its holdings to 16,728 btc, currently valued at… pic.twitter.com/Fi6x5hnNDR
– Riot Platforms, Inc. (@RiotPlatforms) <a target="_blank" href="https://twitter.com/RiotPlatforms/status/1867570759704420356?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>December 13, 2024
The purchase of such a significant amount of bitcoin by Riot Platform in a short period underlines the level of institutional adoption seen by the cryptocurrency market in 2024. With other corporations such as MicroStrategy also increasing their btc holdings, the market has enjoyed a lot of attention from large-scale investors right now. year.
As expected, Riot's share price (with the symbol RIOT) rose more than 7% to around $13.28. As seen with MicroStrategy (MSTR) stock, institutions that continually expand their bitcoin holdings tend to see the reflection in their stock prices, especially as the price of btc continues to rise.
At the time of writing, the price of bitcoin stands at around $101,257, reflecting a 1% increase in the last 24 hours. According to data from CoinGecko, the leading cryptocurrency is down approximately 2% in the last week.
Why Riot bought bitcoin
As inferred above, this latest btc acquisition by Riot Platforms came in the wake of news that activist investor Starboard Value bought a stake in the company. According to the <a target="_blank" href="https://www.wsj.com/finance/currencies/activist-starboard-value-takes-stake-in-bitcoin-mining-company-riot-82b3796f” target=”_blank” rel=”noopener nofollow”>Wall Street JournalStarboard encouraged the bitcoin miner to reinvent some of its bitcoin mining capacity to service artificial intelligence models. It seems that buying the world's largest cryptocurrency is one of the best ways for bitcoin miners to satisfy their investors.
The price of bitcoin on the daily timeframe | Source: BTCUSDT chart on x/rNaHqSPu/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
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