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Riot Platforms and MicroStrategy are boosting their Bitcoin reserves as the leading cryptocurrency reaches its all-time high.
Riot intends to issue $500 million in convertible senior notes due 2030, targeting qualified institutional buyers with an additional $75 million option available to initial purchasers within three days of issuance. These notes will mature on 15 January 2030.
"Riot plans to use the proceeds from this offering to expand its bitcoin holdings and for general corporate purposes," Riot said in a statement.
The announcement comes just one week after rival crypto miner Marathon Digital revealed it is aiming to raise $700M through convertible notes to boost its Bitcoin reserves.
In a statement, the listed crypto miner said it will raise the funds through a private offering of convertible senior notes due 2031, targeting qualified institutional buyers with 0% interest-bearing notes.
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Meanwhile, MicroStrategy said it bought another $2.1 billion worth of Bitcoin yesterday, marking its fifth consecutive Monday that the firm announced Bitcoin purchases.
According to a US Securities and Exchange Commission (SEC) filing, MicroStrategy acquired 21,550 tokens for an average price of approximately $98,783 from 2 to 8 December.
MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per #bitcoin and has achieved BTC Yield of 43.2% QTD and 68.7% YTD. As of 12/8/2024, we hodl 423,650 $BTC acquired for ~$25.6 billion at ~$60,324 per bitcoin. $MSTR https://t.co/8r7bFqMFof
— Michael Saylor⚡️ (@saylor) December 9, 2024
MicroStrategy's success with hoarding Bitcoin has been used as an exemplar by the National Center for Public Policy Research to push Amazon and Microsoft to consider acquiring Bitcoin in their reserves.
Noting that Bitcoin's performance has risen 122% over the past year, the think tank highlighted how the digital asset surpassed bonds by 12%. By using MicroStrategy as an example, the think tank further demonstrated that by increasing their Bitcoin holdings, MicroStrategy's stock price has risen 594% this year, vastly outperforming Amazon's 55% and Microsoft's measly 20%.
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Saylor even delivered a Bitcoin adoption strategy to Microsoft's board of directors. Presenting at Microsoft's December 2024 shareholder meeting, Saylor proposed a transformative shift in Microsoft's treasury approach that would allocate $200 billion in capital distributions into Bitcoin holdings.
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