Despite announcing a strategic plan to purchase Bitcoin, Riot Platforms’ shares experienced a nearly 10% decline. On December 9, at the market opening, the miner stock dropped by 7.1% to $12.03, reflecting a broader decline in crypto-related equities such as Coinbase, Marathon Digital, and CleanSpark, as reported by Yahoo Finance.
This decline in Riot Platforms’ shares contrasts with the overall upward trend in the crypto market. In the past 24 hours, Bitcoin’s price rose by 0.33% to trade at $99,940, according to CryptoSlate’s data. However, it’s important to note that Riot’s last price was marked at the close of after-hours trading on Friday, while Bitcoin trades continuously. The decline in crypto equities this morning can be attributed, in part, to the price disparity created during weekend trading.
Riot Platforms has announced plans to raise $500 million through a convertible senior notes offering in order to fund Bitcoin acquisitions and other corporate needs. The company will privately offer these notes to institutional investors under Rule 144A of the 1933 Securities Act. Buyers will also have a three-day option to purchase up to $75 million in additional notes.
These notes are unsecured senior obligations and will mature on January 15, 2030. However, starting on January 20, 2028, Riot may redeem some or all of the notes for cash, provided that at least $50 million remains outstanding if only a partial redemption occurs. Upon maturity, noteholders will have the option to convert them into Riot’s common stock or a combination of cash and shares.
The proceeds from this offering will be used by Riot Platforms to acquire additional Bitcoin for general corporate purposes. This fundraising strategy is similar to that of Riot’s peers, such as Marathon Digital, which recently announced plans to raise $700 million through a similar private offering. Like Riot, Marathon intends to use the proceeds to bolster its Bitcoin reserves and fund corporate initiatives.
Pierre Rochard, Riot’s Vice President of Research, highlighted the company’s ability to bridge fixed-income investments with Bitcoin’s unique market conditions. He emphasized the firm’s strong operational metrics, including a hashrate of 25 EH/s, as a key competitive advantage.
According to Bitcoin Treasuries data, Riot currently holds 11,425 BTC, making it the third-largest publicly traded corporate Bitcoin holder.
Riot Platforms’ financing strategy aligns with the moves made by other prominent mining rivals like Marathon Digital. Earlier this month, Marathon Digital revealed plans to raise $700 million through a private offering of unsecured convertible senior notes due in 2031. The company stated that the funds raised would be used to acquire more Bitcoin and support general corporate activities.
