As a seasoned crypto investor with over two decades of experience under my belt, witnessing the strategic move by Riot Platforms to purchase over 5,000 Bitcoin in just a few days has been nothing short of thrilling. The timing couldn’t be better, considering the recent pressure from activist investor Starboard Value. It’s clear that institutional adoption is at an all-time high in 2024, with corporations like MicroStrategy also increasing their BTC holdings.
Bitcoin mining firm Riot Platforms boosted its Bitcoin stash by acquiring more than 5,000 coins recently. This substantial buy was made amidst rumors of pressure exerted by activist investor Starboard Value on the miner.
How Much BTC Does Riot Platforms Currently Own?
Last Friday, Riot Platforms disclosed that they had acquired about $510 million in Bitcoin between December 10th and 12th. As stated on their platform X, the price of this recent purchase was estimated to be around $99,669 per BTC, including all relevant fees and charges.
The latest purchase was finalized using the remaining funds from Riot’s sale of their 0.75% convertible bonds issued in 2030 and their existing cash reserves. This transaction increases Riot’s Bitcoin holdings to a total of 16,728 BTC, which is approximately valued at $1.68 billion.
It’s worth noting that the recent Bitcoin acquisition by Riot Platforms was made following a disappointing Q3 financial performance for the company. During this period, they reported a net loss amounting to $154.4 million due to escalating expenses and unrealized investment losses.
Using the funds from Riot’s recent $525 million bond issue with a 0.75% coupon that can be converted into shares, the company purchased 5,117 Bitcoins at an average price of approximately $99,669 per Bitcoin, taking into account fees and other expenses. This acquisition has boosted Riot’s total Bitcoin holdings to 16,728 BTC, which currently have a combined value of…
— Riot Platforms, Inc. (@RiotPlatforms) December 13, 2024
In simple terms, the fact that Riot Platforms bought a large quantity of Bitcoin quickly in 2024 shows how mainstream institutions have embraced cryptocurrency. Companies such as MicroStrategy have also boosted their Bitcoin holdings, attracting significant interest from big-time investors in the market this year.
It’s no wonder that Riot’s stock (RIOT) jumped by over 7% to approximately $13.28. Notably, a similar trend has been seen with MicroStrategy’s stock (MSTR). As these institutions accumulate more Bitcoin, it often translates into an upward trend in their share prices, particularly as the price of Bitcoin itself increases.
Currently, the value of Bitcoin hovers approximately at $101,257, marking a 1% rise over the past day. However, according to CoinGecko’s latest figures, Bitcoin has experienced a 2% decrease in its value over the last week.
Why Riot Bought Bitcoin
It’s clear now that Riot Platforms’ recent purchase of BTC was prompted by Starboard Value acquiring a stake in the company, as reported by the Wall Street Journal. Starboard seems to have suggested that Riot reallocate some of its Bitcoin mining capabilities towards powering AI models instead. Given this, it seems that one effective method for Bitcoin miners to meet investor expectations is by investing in the world’s largest cryptocurrency.
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2024-12-14 20:11