Riot Platforms has significantly boosted its Bitcoin holdings by acquiring $69 million in the cryptocurrency.
Recent filings reveal that Riot Platforms purchased 667 Bitcoin (BTC), raising its total crypto reserves to 17,429 BTC. This recent acquisition was made at an average price of $101,135 per coin, resulting in a total value of nearly $2 billion at Bitcoin’s peak price of $106,000 on December 16.
Riot began its Bitcoin mining operations in 2018 at its facility in Oklahoma, transitioning its corporate strategy towards cryptocurrency. Following the influence of the “sell shares, buy BTC” strategy, the company has not only focused on mining but also on purchasing Bitcoin and executing share buybacks, thereby increasing its crypto reserves.
By integrating mining operations with market purchases, Riot has achieved a remarkable BTC yield—an indicator of the difference between Bitcoin holdings and share dilution. During the fourth quarter, Riot reported a BTC yield of 36.7%, with a year-to-date yield reaching 37.2%.
As discussions surrounding aggressive capital-raising practices continue, companies like Riot have increasingly offered share rights to fund Bitcoin acquisitions, albeit with less intensity compared to industry pioneers. Recently, Riot concluded a $594 million convertible bond sale, utilizing the proceeds for further Bitcoin investments. Similarly, Marathon Digital has engaged in sales of senior notes to acquire additional BTC.
