Riot Platforms Inc (NASDAQ:RIOT) shares are seeing increased attention Tuesday after the company announced an upsized offering of convertible senior notes.
What Happened: Riot announced the pricing of a $525 million offering of its 0.75% convertible senior notes due 2030. The notes will be sold in a private offering to qualified institutional buyers.
The offering was upsized from the previously announced offering of $500 million. The company also plans to grant the initial purchasers a three-day period to buy up to an additional $75 million of the notes.
Riot anticipates net proceeds of approximately $511.5 million, and the offering is expected to close on Wednesday. The company intends to use the proceeds to purchase additional Bitcoin (CRYPTO: BTC).
Investors appear to be digesting details of the strategy. The market has bid up other crypto-linked stocks like MicroStrategy and MARA Holdings in recent months after announcing plans to raise capital to accumulate Bitcoin.
Bitcoin is trading lower on Tuesday and was down 1.69% over a 24-hour period at the time of publication, which appears to be adding some selling pressure to bitcoin mining stocks and other crypto-related names.
Riot said last week that it mined 495 Bitcoin in November, down about 2% from October. The company held a total of 11,425 Bitcoin as of the end of November.
RIOT Price Action: Riot Platforms shares were down 2.63% at $10.92 at the time of publication, according to Benzinga Pro.
- Bitcoin Crashing? 'Mundane' Reasons, Says Bernstein: 'Buy The Dip'
Photo: Shutterstock.
