The company also gave the initial buyers a 3-day-option to purchase up to $75 million more of the notes. The offer is dependent on market conditions and no guarantees are made as to its terms or completion.
Riot reserves the right to convert the notes into cash in full or in part starting January 20, 2028. If partial redemption is made, a minimum of $50 million must be outstanding at the date of the notice.
Riot reserves the right to convert these notes into cash or Riot common stocks, or any combination of both.
The conversion will only be allowed for specific events occurring before June 15, 2029. However, it can occur anytime thereafter until two days prior to maturity. The initial conversion rate will be determined during pricing.
The proceeds from the offering are primarily used to fund further Bitcoin purchases and corporate purposes. Riot intends to calculate the first conversion price by using the U.S. Composite Volume-Weighted Average Price of its Common Stock on the date of the offering.
Notes and convertible shares are not registered under Securities Act or any other securities laws. The notes and convertible shares cannot be traded publicly in the U.S. unless they are properly registered or exempted.
Riot ended Q3 with 10,427 BTC. It added 1,104 BTC without selling any of its holdings. This was an increase over the 844 BTC that were mined in Q2.
Bitcoin Race Heats up: How Miners are Securing Funds Despite Limited Supply and Political Shifts
The announcement is in line with the growing trend of Bitcoin miners using convertible bonds as a way to raise capital.
According The Miner Magazine, seven publicly-traded miners (excluding Riot) raised $5.2 billion through convertible bonds between June and December, with 70% of that amount secured in the last four weeks.
Core Scientific raised $400 million in August while Marathon Digital raised 1 billion in Novembre. The funds were used for debt management and Bitcoin purchase. Marathon bought 6,474 BTC in a week. This brought its total holdings up to 34,797 BTC.
Metaplanet, a Japanese company, raised $45 millions through shares sales in order to fund Bitcoin purchases.
Michael Saylor, the founder of MicroStrategy, is leading the charge in the adoption of Bitcoin by institutions.
On December 9 MicroStrategy made an announcement about a $2.1 Billion purchase of 21,550 BTC, at a cost of $98,783 each Bitcoin.
Michael Saylor is the co-founder of MicroStrategy and former CEO. He recently expressed his optimism for Bitcoin.
Saylor
“I am sure that I will be buying Bitcoins at $1 million per coin.”
Experts believe that the race to secure Bitcoin’s finite amount intensifies as political changes, such as the election of pro Bitcoin U.S. president-elect Donald Trump, take place.
