Bitcoin mining company Riot Platforms has increased its BTC holdings with the addition of over 5,000 coins in the past few days. The landmark purchase came after reports that the miner was under pressure from activist investor Starboard Value.
How Much BTC Does Riot Platforms Have Right Now?
On Friday, December 13, Riot Platforms announced that it bought about $510 million worth of BTC between December 10 and December 12. According to a post on X, the cost of this latest purchase was identified at about $99,669 per BTC, including fees and charges. other cases.
The most recent acquisition was made with net proceeds from the offering of Riots’ 0.75% convertible bond due 2030 and cash reserves. It also brings the Bitcoin miner’s holdings to 16,728 BTC, worth an estimated $1.68 billion.
Interestingly, this BTC purchase comes after a disappointing third quarter performance for Riot Platform. The mining company recorded a net loss of $154.4 million in the third quarter, caused by rising costs and unrealized investment losses.
With proceeds from Riot’s recent $525 million, 0.75% coupon convertible bond issue, the Company received 5,117 BTC at an estimated value of $99,669 per BTC, including fees and expenses. As a result, Riot increased its holdings to 16,728 BTC, currently at its… pic.twitter.com/Fi6x5hnNDR
– Riot Platforms, Inc. (@RiotPlatforms) December 13, 2024
Riot Platforms buying such a large amount of Bitcoin in a short period of time underlines the level of institutional adoption that the crypto market saw in 2024. With other companies like MicroStrategy also increasing their BTC holdings, the market has enjoyed a lot of attention from large investors. a year.
Unsurprisingly, Riot’s stock price (ticker RIOT) rose more than 7% to around $13.28. As noted by MicroStrategy (MSTR) stock, institutions that regularly increase their Bitcoin often see a reflection of their values, especially as the price of BTC continues to rise.
As of this writing, the price of Bitcoin is around 101,257 dollars, showing a 1% increase in the last 24 hours. According to CoinGecko data, the first cryptocurrency fell by almost 2% last week.
Why Riot Bought Bitcoin
As previously explained, this latest BTC acquisition by Riot Platforms comes after the news that activist investor Starboard Value bought a stake in the company. According to the Wall Street Journal, Starboard has encouraged a Bitcoin miner to reinvent its Bitcoin mining capabilities to provide 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 TradingView
Featured image from iStock, chart from TradingView