Riot Platforms Plans $500 Million Convertible Senior Notes Offering

Riot
Platforms,
Inc.
(NASDAQ:
RIOT),
a
prominent
player
in
the
Bitcoin
mining
industry,
has
announced
its
intention
to
conduct
a
private
offering
of
$500
million
in
convertible
senior
notes
due
2030.
The
announcement,
made
on
December
9,
2024,
aims
to
leverage
the
proceeds
for
acquiring
additional
Bitcoin
and
for
general
corporate
purposes,
according
to

Riot
Platforms.

Details
of
the
Offering

The
proposed
notes
will
be
offered
to
qualified
institutional
buyers
following
Rule
144A
under
the
Securities
Act
of
1933.
Riot
Platforms
also
plans
to
grant
initial
purchasers
an
option
to
acquire
an
additional
$75
million
aggregate
principal
amount
of
the
notes.
The
offering’s
completion
is
contingent
upon
market
conditions
and
other
unspecified
factors.

The
notes
are
set
to
mature
on
January
15,
2030,
and
will
be
unsecured,
senior
obligations
of
Riot.
Key
features
include
the
option
for
Riot
to
redeem
the
notes
for
cash
starting
January
20,
2028,
if
specific
conditions
are
met.
The
notes
will
be
convertible
into
cash,
Riot’s
common
stock,
or
a
combination
of
both,
depending
on
Riot’s
discretion.
Conversion
terms
will
be
determined
at
the
pricing
stage,
with
the
conversion
price
based
on
the
U.S.
composite
volume
weighted
average
price
of
Riot’s
common
stock.

Strategic
Implications

This
financial
maneuver
reflects
Riot’s
strategic
focus
on
expanding
its
Bitcoin
holdings,
aligning
with
its
vision
to
become
the
leading
Bitcoin-driven
infrastructure
platform.
Riot’s
operations
in
Bitcoin
mining
are
primarily
located
in
central
Texas
and
Kentucky,
with
additional
infrastructure
capabilities
in
Denver,
Colorado.

Market
and
Regulatory
Considerations

The
notes
and
any
shares
of
Riot’s
common
stock
issued
upon
conversion
are
not
registered
under
the
Securities
Act,
and
thus,
cannot
be
sold
in
the
United
States
without
registration
or
an
applicable
exemption.
This
offering
is
made
exclusively
through
a
private
memorandum,
reinforcing
the
private
nature
of
the
transaction.

Riot’s
forward-looking
statements
highlight
potential
risks
and
uncertainties,
including
market
conditions
and
the
offering’s
potential
completion.
The
company
emphasizes
that
actual
results
may
differ
due
to
various
factors,
as
detailed
in
its
filings
with
the
U.S.
Securities
and
Exchange
Commission.

Riot
Platforms
continues
to
position
itself
as
a
significant
entity
in
the
crypto
infrastructure
space,
with
this
latest
financial
initiative
aimed
at
bolstering
its
operational
capabilities
and
market
presence.

Image
source:
Shutterstock