Riot Platforms acquires $69M in Bitcoin to boost holdings

Riot Platforms has acquired 667 Bitcoin (CRYPTO:BTC) worth $69 million, bringing its total holdings to 17,429 BTC.

At current prices, this is valued at around $2 billion.

The Bitcoin purchase was made at an average price of $101,135 per Bitcoin, as indicated by the company’s filings with the SEC.

Riot, which shifted to Bitcoin mining in 2018, has increasingly aligned its strategy with that of MicroStrategy, which has been a strong proponent of adding Bitcoin to corporate reserves.

Following the announcement, Riot’s stock price rose by nearly 8%.

In addition to the purchase, Riot reported a 36.7% Bitcoin yield for Q4 and a year-to-date yield of 37.2%, reflecting growth in its BTC holdings despite share dilution.

The strategy of using capital raised through share rights to fund Bitcoin purchases remains a point of debate.

However, it is a common practice among major miners like Riot and Marathon Digital (MARA), which recently acquired 11,774 BTC for $1.1 billion through a zero-coupon convertible note offering.

MicroStrategy also made a Bitcoin purchase, acquiring 15,350 BTC for $1.5 billion at an average price of $100,386 per Bitcoin.

With this purchase, MicroStrategy’s total Bitcoin holdings have reached 27,350 BTC, valued at $27.1 billion.

Despite shareholder resistance at companies like Microsoft, other major firms, including Amazon, are considering using part of their cash reserves to buy Bitcoin as a hedge against inflation.

"Everyone buys Bitcoin at the price they deserve. BTC doesn’t wait. It simply transfers wealth to those who see," Michael Saylor stated.

At the time of reporting, the price of Bitcoin (BTC) was $106,967.