Riot Plans $500M Convertible Notes Offering to Fund Bitcoin Purchases

Bitcoin infrastructure firm Riot Platforms has unveiled plans to raise $500M through convertible senior notes in a private offering for institutional investors.

This decision comes as Bitcoin trades near its all-time high and other major industry players make substantial acquisitions at peak prices.

Riot Platforms Targets $500M Offering to Fund Bitcoin Acquisitions: What Investors Need to Know

On Monday, the firm revealed that it proposed a private offering of $500 million worth of convertible senior notes due 2030 for qualified institutional investors.

Notably, the proceeds from these offerings will be used to purchase the mentioned digital asset.

The company has also granted the initial purchasers a 3-day option to buy up to an additional $75 million of the notes. The offering is subject to market conditions, and there is no guarantee of its completion or terms.

Riot retains the right to redeem the notes for cash, in whole or part, starting January 20, 2028. If partially redeemed, at least $50 million in principal must remain outstanding as of the redemption notice date.

The notes can be converted into cash, Riot common stock, or a combination thereof at Riot’s discretion.

Conversion will be restricted to specific events before June 15, 2029, but allowed anytime after until two days before maturity. The initial conversion rate and terms will be set during pricing.

Proceeds from the offering will primarily fund additional Bitcoin acquisitions and other corporate purposes. Riot plans to calculate the initial conversion price using its common stock’s U.S. composite volume-weighted average price on the pricing date.

The notes and any convertible shares will not be registered under the Securities Act or other securities laws. They cannot publicly trade in the U.S. without proper registration or exemptions.

Riot closed Q3 with 10,427 BTC, adding 1,104 BTC while refraining from selling any holdings. This marked an increase from the 844 BTC mined in Q2.

Race for Bitcoin Heats Up: How Miners Are Securing Funds Amid Limited Supply and Political Shifts

The announcement aligns with a rising trend among Bitcoin miners leveraging convertible bonds to raise capital.

According to The Miner Mag, seven publicly traded miners, excluding Riot, raised $5.2 billion via convertible bonds since June, with 70% of the funds secured in the four weeks leading up to December 5.

Core Scientific issued $400 million in August, while Marathon Digital raised $1 billion in November. The company used the funds for debt management and Bitcoin purchases. Within a week, Marathon acquired 6,474 BTC, bringing its holdings to 34,797 BTC.

Japanese firm Metaplanet followed suit, raising $45 million through share sales to finance Bitcoin acquisitions.

This aligns with the growing institutional adoption of Bitcoin, with advocates like MicroStrategy founder Michael Saylor leading the charge.

On December 9, MicroStrategy announced a $2.1 billion purchase of 21,550 BTC at an average of $98,783 per Bitcoin.

Michael Saylor, co-founder and former CEO of MicroStrategy, recently expressed his long-term optimism about Bitcoin.

Saylor said

“I’m sure I’ll be buying Bitcoin at $1 million a coin.”

Some experts believe the race for Bitcoin’s finite supply intensifies, especially amid political shifts, including the election of pro-Bitcoin U.S. President-elect Donald Trump.

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