Riot pads Bitcoin trove with $500m note sale
Bitcoin infrastructure company Riot Platforms has proposed issuing debt securities to fund BTC purchases and fund “general corporate purposes.”
Riot platforms announcement plans to offer $500 million of convertible senior notes through a private offering to accredited institutional buyers. Investors will also have an option to purchase an additional $75 million within three days of the initial investment.
Convertible notes are debt instruments that grant equity rights to purchasers, allowing the ability to convert the notes into units of ownership in a publicly traded entity.
“Riot intends to use the net proceeds from this offering to acquire additional Bitcoin” (BTC) read a December 9 press release from the crypto mining startup.
Notes on the Bitcoin trend
Colorado-based Riot has joined a growing group of companies funding Bitcoin purchases by offering shares. Marathon Digital Holdings, another BTC miner, increased its ticket sale to $850 million with an additional $150 million option on December 3 and increase his total BTC horde exceeds $3.3 billion.
Japanese investment giant Metaplanet holds over $45 million in Bitcoin, mostly finance by selling shares to obtain capital.
The National Center for Public Policy Research, a global think tank, exhorted Jeff Bezos’ Amazon will include Bitcoin in its corporate reserves. Binance founder Changpeng “Cz” Zhao supported the idea, pointing out that Amazon should also add BTC as a payment option.
Companies like Chinese companies SOS Limited and Genius Group adopted the concept of raising capital by borrowing securities initiated by Michael Saylor, founder of MicroStrategy.
Saylor, a crypto skeptic turned Bitcoin advocate, has claimed that BTC will capture a larger portion of the world’s liquidity reserves in the coming years. MicroStrategy’s executive chairman and other BTC supporters have also pressed U.S. authorities to create a strategic national Bitcoin reserve.
Experts assumed that an open race to the bottom of BTC supply between countries has already begun, especially since the US elections beckons a regime change under the leadership of pro-Bitcoin President-elect Donald Trump.
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