Riot Platforms, Inc. has announced plans to offer $500 million in convertible senior notes, set to mature on January 15, 2030. This private offering targets qualified institutional buyers and may include an additional $75 million if certain conditions are met. The notes are unsecured and can be redeemed or converted into cash or shares of Riot’s common stock after January 20, 2028. Proceeds from this offering will primarily be used to acquire more Bitcoin and support general corporate activities. Riot operates Bitcoin mining operations in Texas and Kentucky and focuses on developing Bitcoin-driven infrastructure. The offering is subject to Market conditions, and there are no guarantees it will proceed as planned.
Riot Platforms Plans Major Private Offering of Convertible Senior Notes
CASTLE ROCK, Colo. — December 9, 2024 — Riot Platforms, Inc. (NASDAQ: RIOT) has revealed plans to offer $500 million in convertible senior notes due 2030. This private offering aims to attract qualified institutional buyers and is dependent on current Market conditions. Riot may also provide initial purchasers with an option to buy an additional $75 million within three days of the notes’ issuance.
What Are the Convertible Senior Notes?
The notes will be unsecured and senior obligations of Riot, maturing on January 15, 2030, unless repurchased or converted earlier. After January 20, 2028, Riot may redeem these notes for cash, provided a minimum of $50 million remains outstanding. Investors can convert the notes into cash, shares of Riot’s common stock, or a mix of both, following specific guidelines. Notably, prior to June 15, 2029, conversion is only allowable under certain conditions.
Riot aims to use the proceeds from this offering to expand its bitcoin acquisitions and for general corporate purposes. Importantly, these notes have not been registered under the Securities Act, meaning they will only be sold to qualified institutional buyers.
Riot’s Vision and Mission
Riot Platforms is focused on being a leading infrastructure platform for Bitcoin. The company employs a vertically integrated strategy for its Bitcoin mining operations, which are based in Texas and Kentucky. Riot is committed to creating a positive impact within its sectors and communities while pursuing innovative approaches to achieve success.
Forward-Looking Statements and Investor Information
While Riot is optimistic about this offering, it acknowledges potential risks and uncertainties. As with any investment opportunity, potential investors are encouraged to conduct thorough research.
For more details, please reach out to Riot Platforms’ Investor Contact, Phil McPherson, at [email protected] or call 303-794-2000 ext. 110.
In summary, Riot Platforms is making a significant move in the capital markets, aiming to bolster its position in the Bitcoin ecosystem through strategic financing.
Tags: Riot Platforms, convertible senior notes, Bitcoin investment, private offering, NASDAQ RIOT.
What is Riot Platforms planning with the $500 million offering?
Riot Platforms is looking to raise $500 million by offering convertible senior notes. This money will likely help with their ongoing operations and future projects.
What are convertible senior notes?
Convertible senior notes are a type of loan that investors can convert into company shares after a certain time. This gives investors a chance to benefit if the company grows and its stock price increases.
Why is Riot Platforms doing this?
Riot Platforms wants to strengthen its financial position. By raising capital through this offering, they can fund new projects, pay down debt, or invest in growth opportunities.
When will the offering take place?
The exact timing of the offering is still being decided. Riot Platforms will share more details when they are ready to offer the notes to investors.
What should investors know?
Investors should consider the risks and potential rewards of investing in convertible senior notes. They should also keep an eye on Riot’s future plans and how this money will be used to grow the company.
