In a significant development within the cryptocurrency space, Riot Platforms, a prominent Bitcoin miner, has made a substantial addition to its Bitcoin holdings. The company has acquired 667 Bitcoin, amounting to a whopping $69 million investment, as reported in its Securities and Exchange Commission filings. This recent purchase has propelled its total Bitcoin stash to an impressive 17,429 BTC. The acquisition was made at an average price of $101,135 per coin, and with the December 16 peak price of $106,000, the total value of its Bitcoin balance has soared to nearly $2 billion.
Riot’s journey in the Bitcoin mining domain began in 2018 at its Oklahoma facility, following a shift in corporate focus. Taking inspiration from MicroStrategy Chairman Michael Saylor’s revolutionary “sell shares, buy BTC” mantra, Riot has adopted a comprehensive approach. It has not only focused on mining operations but has also actively engaged in Bitcoin purchases and share buybacks, thereby steadily augmenting its crypto reserves.
One of the key performance indicators for Riot has been the BTC yield. This metric, which calculates the difference between BTC holdings and share dilution, has shown remarkable results. Since the onset of the fourth quarter, Riot has achieved an enviable 36.7% BTC yield, and on a year-to-date basis, the yield stands at 37.2%. This achievement is a testament to the company’s astute strategy of combining mining with strategic market acquisitions. The practice of corporations, especially Bitcoin miners like Riot, raising capital for Bitcoin purchases through share rights offerings has been a subject of intense debate.
However, Riot and its peers, such as Marathon Digital, have continued to pursue this path, albeit with a more measured approach compared to MicroStrategy. In fact, Riot recently concluded a $594 million convertible bond sale, with the express intention of funneling the proceeds into further Bitcoin acquisitions. This move not only underlines Riot’s commitment to expanding its Bitcoin portfolio but also signals its confidence in the long-term prospects of the world’s leading cryptocurrency. As the cryptocurrency market continues to evolve, Riot’s actions are likely to be closely watched by investors and industry observers alike, potentially setting a precedent for other players in the space to follow suit in their pursuit of Bitcoin accumulation and value creation.
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