Bitcoin mining giant Riot Platforms has expanded its crypto reserves, purchasing 5,117 BTC for $510 million. The acquisition follows Riot’s recent $525 million capital raise via a private senior convertible notes offering.
The company bought Bitcoin at an average price of $99,669 per coin, including fees. According to CoinGecko data, Riot’s total Bitcoin holdings now stand at 16,728 BTC, valued at approximately $1.69 billion.
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Bitcoin Treasury Reserve by Microstrategy
Riot’s strategy mirrors that of MicroStrategy, which popularized the Bitcoin treasury reserve model in 2020. MicroStrategy initially bought BTC during the COVID-19 pandemic to maximize shareholder returns. Today, the firm holds 423,650 BTC, valued at nearly $43 billion.
MicroStrategy’s approach relies on private offerings and debt to fund Bitcoin purchases, encouraging other firms to follow suit. Riot and other major U.S. Bitcoin miners, like Marathon Digital (MARA), are adopting similar strategies to bolster their balance sheets.
On Tuesday, Marathon revealed it had purchased 11,774 BTC for $1.1 billion at an average price of $96,000 per coin. This growing trend reflects miners’ efforts to enhance profitability and hedge against inflation by increasing Bitcoin reserves.
With Riot’s recent buy, the company further solidifies its position among the largest Bitcoin holders in the mining sector.