Riot Blockchain Bitcoin Miners Will Sell Shares Equivalent to IDR 7.2 Trillion

global.gerbangindonesia.org - Riot Blockchain Bitcoin Miners Will Sell Shares Equivalent to IDR 7.2 Trillion

global.gerbangindonesia.org – Riot Blockchain Bitcoin Miners Will Sell Shares Equivalent to IDR 7.2 Trillion

Bitcoin miner Riot Blockchain (RIOT) submitted a prospectus to the Securities and Exchange Commission (SEC) of the United States (US) for the sale of shares of up to USD 500 million or around IDR 7.2 trillion (exchange rate of IDR 14,371 per USD) gradually. Otherwise known as all-the-market (ATM) deals.

Launching Coindesk, written on Sunday (3/4/2022), acting as underwriters are Cantor Fitzgerald, B. Riley Securities, BTIG, Roth Capital Partners, D.A. Davidson, Macquarie Capital (USA) and Northland Securities. Riot Blockchain currently has approximately 116.7 million shares outstanding.

If all USD 500 million were offered at the current share price, the number of shares would increase by about 20 percent to approximately 140 million shares.

Proceeds from offerings in this market will be used for general corporate purposes, which may include investments in existing and future projects.

More recently, Riot said it had 5,783 bitcoins on its balance sheet as of March 1. That would be worth over USD 267 million at bitcoin’s current price of USD 46,200.

Riot underperformed most of its crypto mining peers on Friday afternoon, dropping 2 percent as Marathon Digital (MARA) and Hut 8 (HUT) shares posted modest gains.

Mining Sector Consolidation Year

global.gerbangindonesia.org - Riot Blockchain Bitcoin Miners Will Sell Shares Equivalent to IDR 7.2 Trillion

Previously, one of the largest publicly traded Bitcoin mining companies, Riot Blockchain (RIOT) saw this year as a “year of consolidation in the Bitcoin mining industry” and expected the company to potentially benefit from such a trend.

The company said it will continue to evaluate strategic opportunities it may decide to undertake as part of its strategic growth initiative, the company said in a Securities and Exchange Commission (SEC) filing.

Riot reported 2021 revenue of $213.2 million, up 1.665 percent from 2020 and beating analyst estimates of an average $211.06 million, according to FactSet data.

“The increase in the company’s hashrate and Bitcoin prices will help the company’s revenue in 2021,” the company said, quoted from CoinDesk, Sunday, March 27, 2022.

Riot also increased Bitcoin held on its balance sheet by 353 percent in 2021, compared to 1,078 in 2020. As of March 3, 2022, Riot said it held approximately 5,783 Bitcoins that were self-mined at the end of February.

With this Riot hopes to achieve a 2022 hashrate of 12.8 exahash per second (EH/s). In comparison, its partner company Marathon Digital says it expects to hit a hashrate of 23.3 EH/s by early 2023.

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