Riot Platforms Announces $500 Million Convertible Senior Notes Offering
On December 9, 2024, Riot Platforms, Inc. (NASDAQ: RIOT) made a big announcement. They revealed their plan to offer $500 million in convertible senior notes due 2030. This private offering is aimed at qualified institutional investors and will be done under Rule 144A of the Securities Act of 1933, subject to market conditions and other factors.
Moreover, Riot plans to give the initial purchasers of the notes an option to buy an additional $75 million within the first three days after the notes are issued. Keep in mind that the offering is dependent on market conditions, so there is no guarantee that it will go through.
These notes will represent Riot’s senior obligations and will mature on January 15, 2030. There is the option for Riot to redeem all or some of the notes on or after January 20, 2028, under specific conditions. The notes can be converted into cash, Riot’s common stock, or a mix of both at Riot’s discretion. And there are certain conditions that must be met for conversion before June 15, 2029.
Riot intends to use the funds raised from this offering to acquire more bitcoin and for general corporate purposes. The notes will be offered to qualified institutional buyers in accordance with Rule 144A, but please note that they have not been registered under the Securities Act.
It’s essential to highlight that this press release is not an offer to sell or buy the notes. The actual offering will be outlined in a private offering memorandum. Riot’s main goal is to be a leading Bitcoin-driven infrastructure platform, focusing on mining operations and digital infrastructure. They believe in creating positive impacts in the sectors and communities they engage with.
Remember that forward-looking statements in this press release are based on management’s current expectations and may not necessarily reflect actual results due to various factors. As with any investment, success is not guaranteed. Stay informed and consider all relevant information before making any financial decisions.
