Riot Acquires 5,117 BTC for $510 Million

Riot Platforms, a prominent Bitcoin mining company based in Colorado, has significantly expanded its Bitcoin holdings by acquiring 5,117 BTC for $510 million. This acquisition, announced on December 13, is the result of the company’s $525 million convertible bond offering, which it had previously announced on December 11. Riot’s latest purchase was made at an average price of $99,669 per Bitcoin.

With this purchase, Riot’s total Bitcoin holdings have increased to 16,728 BTC, with an estimated value of $1.68 billion at current Bitcoin prices. This marks a notable increase from the 10,928 BTC it held at the end of October 2024. Prior to this acquisition, Riot had already mined 505 BTC in October, with no BTC being sold in the two months preceding the purchase.

The company’s Bitcoin strategy reflects a broader trend among publicly traded companies adopting Bitcoin as a treasury reserve asset. Riot’s acquisition follows the “MicroStrategy” playbook, a strategy that has been popularized by companies like MicroStrategy, which remains the largest holder of Bitcoin with over 423,650 BTC. Other companies, such as Hong Kong-listed Boyaa Interactive and Marathon Digital, have also embraced this approach, with some analysts predicting that Bitcoin could reach $200,000 by 2025, driven by factors like national governments building Bitcoin reserves.

Riot’s growing Bitcoin holdings come as part of its bullish outlook on the cryptocurrency, which has been shared by various companies in the space. Riot’s latest move strengthens its position as a major player in the Bitcoin mining sector and signals its continued confidence in Bitcoin’s future value. Despite a recent rejection by Microsoft shareholders of a proposal to add Bitcoin to its corporate reserves, there is speculation that more companies, including Amazon, may consider similar moves in the future, especially as Bitcoin’s strategic value continues to rise.