Riot Platforms Expands Cryptocurrency Portfolio

In a significant expansion of its cryptocurrency portfolio, Riot Platforms (NASDAQ:RIOT), Inc. has acquired approximately 5,117 Bitcoins. The purchase was made over a three-day period, from December 10, 2024, to December 12, 2024, and cost the company about $510 million. This investment has raised the average price paid per Bitcoin by Riot Platforms to roughly $99,669, after including fees and expenses.

As a result of this acquisition, Riot Platforms now holds a total of 16,728 Bitcoins as of December 12, 2024. The funding for this large-scale purchase was sourced from the net proceeds of the company's 0.75% convertible senior notes due in 2030, supplemented by its available cash reserves.

Stock Performance

In a related development, the shares of Riot Platforms (NASDAQ:RIOT) saw a notable increase yesterday. The company's stock rose by 5% on Thursday following a report by the Wall Street Journal. The report disclosed that Starboard Value, an activist investor, has become a significant shareholder in the cryptocurrency mining company and is pushing for strategic changes.

Among the advocated changes, Starboard Value suggests that Riot should consider repurposing some of its Bitcoin-mining operations to serve the needs of hyperscalers. These are large-scale entities in need of expansive data center services. This recommendation is part of Starboard's strategy to optimize Riot's operations and comes from sources close to the situation.

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