Riot Increases Bitcoin Holdings by $69M Amid Market Gains

Riot Platforms, a major Bitcoin mining company, has increased its Bitcoin holdings by $69 million, further solidifying its position in the cryptocurrency space. According to filings with the U.S. Securities and Exchange Commission, Riot acquired 667 Bitcoin at an average price of $101,135 per coin. With this purchase, the company’s total Bitcoin holdings now stand at 17,429 BTC, valued at nearly $2 billion based on Bitcoin’s December 16 price of $106,000.

Riot, which began its Bitcoin mining operations in 2018 at its Oklahoma facility, has adjusted its corporate strategy over time, shifting its focus toward increasing its crypto reserves. The company was influenced by MicroStrategy’s Michael Saylor, who famously implemented the strategy of selling shares to raise capital for Bitcoin purchases. Riot has adopted a similar approach, blending its mining operations with Bitcoin acquisitions and share buybacks, further growing its cryptocurrency holdings.

By combining its mining efforts with strategic market purchases, Riot has achieved an impressive Bitcoin yield. This metric, which gauges the difference between Bitcoin holdings and share dilution, has been significant. Since the beginning of the fourth quarter of 2024, Riot has achieved a Bitcoin yield of 36.7%, with a year-to-date yield of 37.2%.

This strategy, inspired by Saylor’s approach, has sparked debates in the financial world. While the practice of issuing shares to fund Bitcoin purchases has garnered attention, miners like Riot and other companies are increasingly using it as a means to enhance their crypto holdings. However, the strategy is less aggressive compared to MicroStrategy’s approach, which has resulted in the company becoming the largest corporate holder of Bitcoin.

Riot has also pursued additional funding to support its Bitcoin acquisition strategy. Recently, the company completed a $594 million convertible bond sale, channeling the proceeds into further Bitcoin purchases. Marathon Digital, another prominent Bitcoin miner, has adopted a similar approach, selling senior notes to raise funds for additional BTC acquisitions.

As Bitcoin continues to soar in value, companies like Riot Platforms are strategically expanding their Bitcoin holdings, reflecting their belief in the long-term potential of the leading cryptocurrency. However, this growing trend of acquiring Bitcoin with market-raised capital is under scrutiny, and the sustainability of such practices remains a topic of debate.