Riot Platforms, Inc. from Castle Rock, Colorado, has announced its plans to offer $500 million in convertible senior notes due in 2030. This private offering is aimed at qualified institutional buyers and is contingent on Market conditions. Additionally, the company may allow initial buyers to purchase an extra $75 million of these notes within three days of the initial issuance. The funds raised will primarily be used to acquire more bitcoin and for general corporate purposes. The notes are unsecured and will convert into cash or Riot’s common stock based on certain terms. Interested investors should note that this offering isn’t registered under the Securities Act.
Riot Platforms Announces $500 Million Convertible Notes Offering
CASTLE ROCK, Colo., Dec. 9, 2024 — Riot Platforms, Inc. (NASDAQ: RIOT) has announced plans to offer $500 million in convertible senior notes due 2030, aimed at qualified institutional buyers. This private offering is made under Rule 144A of the Securities Act and may be increased by an additional $75 million if initial purchasers exercise their option. The offering’s completion is subject to Market conditions.
Key Details of the Offering:
– The notes are unsecured, maturing on January 15, 2030, but can be repurchased or converted before that date.
– Riot may redeem the notes for cash after January 20, 2028, under certain conditions.
– Proceeds from this offering will be used to acquire more Bitcoin and for general corporate purposes.
Riot Platforms intends to leverage these funds furthering their position as a leader in Bitcoin mining. They focus on vertically integrated strategies with operations in Texas, Kentucky, and Denver, Colorado. The company’s commitment to innovation and strong community partnerships positions it for impactful growth in the digital infrastructure space.
It’s important to note that this offering is not an invitation to purchase notes in jurisdictions where it would be illegal. No guarantees are made regarding the offering’s completion.
For more details about Riot Platforms or the offering, investors can reach out to Phil McPherson at IR@Riot.Inc.
Tags: Riot Platforms, Bitcoin, convertible senior notes, cryptocurrency investment, digital infrastructure
What are convertible senior notes?
Convertible senior notes are a type of debt that companies can issue. They allow investors to lend money to the company, and later, they can convert that loan into company shares. This can be appealing if the company does well and its stock price rises.
Why is Riot Platforms doing this offering?
Riot Platforms is proposing this private offering to raise $500 million. The funds can help the company finance its operations, invest in growth, and enhance its overall financial flexibility.
Who can buy these notes?
The convertible senior notes are being offered to a select group of institutional investors. This means they are not available to the general public but are targeted at larger organizations that typically invest in such securities.
When will the notes convert into shares?
The specific timeline for conversion will be outlined in the terms of the offering. Generally, investors can convert their notes into shares at certain times, depending on Market conditions and the agreed terms.
What will happen with the interest on these notes?
These convertible senior notes will typically pay interest to investors. This interest is usually paid semi-annually, giving investors a return on their investment while they hold the notes before conversion.
