CASTLE ROCK, Colo. - Riot Platforms, Inc. (NASDAQ: NASDAQ:RIOT), a Bitcoin mining and digital infrastructure company with a market capitalization of $4.3 billion, announced today its plans to offer $500 million in convertible senior notes due 2030 in a private offering aimed at qualified institutional buyers. According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet, maintaining a healthy current ratio of 5.68. The company also plans to provide these buyers with an option to purchase up to an additional $75 million in notes within a three-day window from the issue date.
The notes, which are unsecured and rank senior, are set to mature on January 15, 2030, unless they are repurchased, redeemed, or converted before that date. Riot may choose to redeem the notes for cash in whole or in part after January 20, 2028, but not if less than $50 million in principal amount remains outstanding. Conversion of the notes into cash, Riot's common stock, or a combination thereof, will be at the discretion of Riot. The conversion will be subject to specific conditions and will only be allowed at certain times before June 15, 2029, and then at any time up to the second scheduled trading day before the maturity date. The initial conversion rate and other terms will be determined at the time of the offering's pricing.
Riot intends to use the net proceeds from the offering to purchase additional bitcoin and for general corporate purposes. This move comes as InvestingPro data shows the company is quickly burning through cash, though analysts anticipate strong revenue growth of 32% for the current year. InvestingPro subscribers have access to 14 additional key insights about RIOT's financial health and growth prospects. The notes and any shares of common stock that may be issued upon their conversion will not be registered under the Securities Act of 1933 or any state securities laws, and, unless registered, may not be offered or sold in the United States except in accordance with an exemption from such registration requirements.
The press release from Riot Platforms emphasizes that the offering is subject to market conditions and other factors, and there is no guarantee as to whether or when the offering may be completed, or on what terms.
This move by Riot Platforms is part of its broader strategy to build a leading Bitcoin-driven infrastructure platform. The company operates Bitcoin mining operations in Texas and Kentucky and has electrical switchgear engineering and fabrication operations in Denver, Colorado. With a strong return over the last three months and revenue growth of 19.4% in the last twelve months, investors seeking deeper insights can access RIOT's comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of the company's growth trajectory and financial health.
The information regarding this proposed offering is based on a press release statement from Riot Platforms, Inc.
In other recent news, Riot Platforms reported a decrease in Bitcoin production for November 2024, mining a total of 495 Bitcoin, a 2% decrease from the previous month. The company also saw a 5% growth in their operational hash rate capacity. Despite a disappointing third-quarter earnings report, Riot Platforms maintains a Buy rating from Compass Point, H.C. Wainwright, and ATB Capital Markets.
In other developments, Bitcoin's value soared past the $100,000 mark, resulting in a surge in cryptocurrency-related stocks. The rise in Bitcoin's value followed President-elect Donald Trump's decision to appoint Paul Atkins as the new Chair of the Securities and Exchange Commission (SEC). Companies such as Riot Platforms, MARA Holdings, Bit Digital, and MicroStrategy experienced significant gains in their shares.
Furthermore, B. Riley Financial updated its stock price targets for several digital mining companies including Bitfarms Ltd., HIVE Digital Technologies Ltd., and Stronghold Digital Mining, Inc., maintaining a 'Buy' rating for these stocks. This revision followed a surge in Bitcoin value and a modest increase in the global network hash rate.
Finally, Riot Platforms reported an increase in Bitcoin production for October 2024, attributed to an expansion in the deployed hash rate at the Corsicana Facility. Despite a cut in its target price from $18 to $13 by Compass Point due to a disappointing third-quarter earnings report, Riot Platforms maintains a Buy rating. 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.