According to the latest filing from the SEC, Bitcoin mining company Riot Platforms purchased 667 BTC for a value of up to 69 million USD. The purchase was made at an average price of $101,135 per Bitcoin.
With this deal, the total amount of Bitcoin that Riot holds has increased to 17,429 BTC, worth about 2 billion USD at current prices.
Riot Is Following MicroStrategy’s Bitcoin Buying Strategy
Riot first turned its business to Bitcoin mining in 2018, operating from a facility in Oklahoma. The company later expanded its strategy, emulating MicroStrategy President Michael Saylor’s approach of buying Bitcoin and launching stock buybacks to increase its cryptocurrency reserves.
After Notification Hey, Riot’s stock price is up nearly 8% today. The company’s mining activities and Bitcoin purchasing strategies have significantly contributed to increasing the amount of BTC obtained.
Riot also reported a Bitcoin profit rate of 36.7% for the fourth quarter to date and a year-to-date profit rate of 37.2%. This ratio shows an increase in BTC holdings compared to a decrease in stock price.
How to raise capital through stock options to buy Bitcoin is still a controversial topic. However, large mining companies such as Riot and Marathon Digital (MARA) continue to apply this method.
Last week, MARA bought 11,774 BTC for $1.1 billion, using funds from the issuance of zero-coupon convertible bonds.
Meanwhile, MicroStrategy also announced its latest Bitcoin purchase today. The company purchased 15,350 BTC for a total value of $1.5 billion at an average price of $100,386 per Bitcoin.
After this deal, MicroStrategy owns $27.1 billion worth of BTC. The company reports a Q4 Bitcoin return of 46.4% and a year-to-date rate of 72.4%, reflecting its aggressive Bitcoin buying strategy.
Shares of MicroStrategy (MSTR) have strongly mirrored Bitcoin’s growth this year, up nearly 500% year-to-date. This development catapulted Michael Saylor’s company into the top 100 publicly listed companies in the United States.
“People buy Bitcoin at the price they deserve. BTC does not wait. It is simply a transfer of wealth to those who have seen it,” Michael Saylor recently said write on X (formerly Twitter).
Saylor has long encouraged companies to publicly add Bitcoin to their portfolios. Despite many proposals, Microsoft shareholders recently rejected a proposal to include Bitcoin in the company’s treasury.
However, their opponents, Amazon shareholders, have a different view. They have proposed dedicating a portion of Amazon’s $88 billion cash reserves to Bitcoin as an anti-inflation measure.