CASTLE ROCK, Colo. – Riot Platforms, Inc. (NASDAQ:RIOT), a Bitcoin mining and digital infrastructure company, today announced the completion of its offering of 0.75% convertible senior notes due 2030. The total principal amount of the 2030 Notes reached $594.4 million, which includes $69.4 million from the initial purchasers' option exercise. According to InvestingPro data, Riot maintains a strong balance sheet with more cash than debt, and a healthy current ratio of 5.68x.
The private offering targeted qualified institutional buyers, adhering to Rule 144A under the Securities Act of 1933. Riot Platforms disclosed that the net proceeds, amounting to approximately $579.2 million after initial purchasers' discounts, commissions, and estimated offering expenses, have been predominantly invested in acquiring additional Bitcoin. This capital raise comes as InvestingPro analysis shows the company has been rapidly burning through cash, though analysts project 32% revenue growth for the current year.
The company, with operations in Texas, Kentucky, and Colorado, emphasizes its vision to lead as a Bitcoin-driven infrastructure platform. Riot's strategy is to integrate its Bitcoin mining operations with electrical switchgear engineering and fabrication. The company's market capitalization stands at $4.3 billion, with analyst price targets ranging from $11 to $25 per share. Get comprehensive insights and 12 additional ProTips with an InvestingPro subscription.
While the press release contains forward-looking statements, these are based on current expectations and projections about future events. It is noted that actual results could materially differ due to various risks and uncertainties. The company has directed interested parties to its SEC filings for a detailed discussion of potential risks and other factors that may affect outcomes. Recent performance has been strong, with the stock showing a 16% return over the past week and 23% over six months.
The issuance of the 2030 Notes does not constitute an offer to sell or a solicitation of an offer to buy in any jurisdiction where such actions would contravene securities laws.
This news is based on a press release statement from Riot Platforms, Inc. and no endorsement of the company's claims is implied. The information provided is intended for general news purposes only.
In other recent news, Riot Platforms, Inc. has made significant moves in the cryptocurrency market, acquiring approximately 5,117 Bitcoins for about $510 million. This purchase has increased the company's total Bitcoin holdings to 16,728. The funding for this acquisition was sourced from the net proceeds of Riot's 0.75% convertible senior notes due in 2030, supplemented by available cash reserves.
Furthermore, Riot Platforms has announced plans for a private offering of $500 million in convertible senior notes due 2030. The proceeds from this offering are intended for the acquisition of additional Bitcoin and general corporate purposes. In addition, Starboard Value, an activist investor, has emerged as a significant shareholder in Riot Platforms, advocating for strategic changes within the company's operations.
Analysts from InvestingPro anticipate a strong revenue growth of 32% for the current year for Riot Platforms. The company has also received a Buy rating from firms such as Compass Point, H.C. Wainwright, and ATB Capital Markets. Despite a decrease in Bitcoin production in November 2024, Riot Platforms reported an increase in their operational hash rate capacity. These are the recent developments for Riot Platforms.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.