Riot Platforms, one of the largest Bitcoin mining firms, has joined the bandwagon of companies privately offering millions of dollars worth of convertible senior notes to raise funds for acquiring additional bitcoin (BTC).
According to a press release, Riot Platforms will be offering $500 million worth of convertible senior notes to qualified institutional investors. A major part of the net proceeds from the sales will be channeled toward increasing the Bitcoin miner’s stash, while the rest will be used for general corporate purposes.
Riot Platforms Announces $500M Notes Offering
The convertible notes are due in 2030, and their initial purchasers have the option to buy an additional $75 million aggregate principal amount of the offering within three days starting on the date the notes are issued.
“Prior to June 15, 2029, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering,” the company said.
Riot said the notes will be unsecured, senior obligations that are convertible to cash, shares of Riot’s common stock, RIOT, or a combination of cash and the shares. Notably, the Bitcoin miner can redeem all or any portion of the notes on or after January 20, 2028.
“If Riot redeems fewer than all the outstanding notes, at least $50 million aggregate principal amount of notes must be outstanding and not subject to redemption as of the relevant redemption notice date,” the Bitcoin mining entity added.
Raising Funds to Buy More Bitcoin
Over the last few months, several companies, including the Bitcoin miner Marathon Digital, the business intelligence firm MicroStrategy, and the Japanese investment company Metaplanet, have raised funds through several means to acquire more BTC. Some have announced private convertible senior notes offerings, while others, like Metaplanet, are issuing bonds.
Last week, Marathon Digital, the largest Bitcoin mining entity, announced an $800 million convertible senior notes offering geared towards topping its BTC portfolio. MicroStrategy has announced several and recently unveiled a $2.6 billion offering focused on reinforcing its pro-bitcoin stance.