Riot Platforms To Raise $525 Million Via Private Convertible Debt To Purchase Bitcoins

On Tuesday, Bitcoin mining company Riot Platforms, Inc RIOT priced its upsized private offering of $525 million 0.75% convertible senior notes due 2030.

Riot also granted the notes’ initial purchasers an option to purchase up to an additional $75 million in aggregate principal amount of the notes.

The offering was upsized from $500 million and will close on December 11, 2024.

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Riot intends to use the net proceeds from the offering to acquire additional bitcoins and for general corporate purposes.

Riot estimates that the net proceeds from the sale of the notes will be approximately $511.5 million if the additional option is not exercised.

The notes will bear interest at 0.75% per year, payable semiannually in arrears on January 15 and July 15 of each year, and mature on January 15, 2030.

Riot may redeem for cash all or any portion of the notes at a redemption price equal to 100% of the principal amount of the notes if the daily volume-weighted average price has been at least 130% of the conversion price.

The notes will be convertible into cash, shares of Riot’s common stock, or a combination of cash and shares of Riot’s common stock at Riot’s election.

The conversion rate for the notes will initially be 67.3 shares of Riot’s common stock per $1,000 principal amount of notes, representing a premium of approximately 32.5% over the U.S. composite volume weighted average price of Riot’s common stock.

November marked a record month for the cryptocurrency market, fueled by President-elect Donald Trump’s reelection, which triggered a rally, according to a JPMorgan research report.

The JP Morgan report flagged a 45% growth in the crypto market cap, which reached $3.3 trillion. Trading volumes across the crypto market surged over twofold during the month.

Riot said it mined 505 bitcoins in October 2024, up 23% month over month. As of the end of October, it held 10,928 bitcoins.

Riot Platforms stock plunged above 27% year-to-date. It reported third-quarter revenue of $84.8 million, which missed the consensus estimate of $95.4 million. EPS loss of 54 cents missed the consensus loss estimate of 15 cents.

Investors can gain exposure to Riot Platforms stock through Fidelity Crypto Industry and Digital Payments ETF FDIG and CoinShares Valkyrie Bitcoin Miners ETF WGMI.

Price Action: RIOT stock is up 1.52% at $11.38 premarket at last check Tuesday.

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