Riot Platforms, a prominent Bitcoin mining and digital infrastructure startup, has revealed plans to raise $500 million through a private sale of convertible senior notes scheduled for 2030. The revenues of this sale will be utilized to acquire further Bitcoin.
The sale is aimed at qualified institutional buyers and includes the opportunity to purchase an additional $75 million in notes.
Convertible notes in Bitcoin acquisitions
According to the official release, Riot intends to utilize the revenues to purchase more Bitcoin and support general company activities, reflecting BTC’s increasing worth as digital gold. The firm went to X to make an announcement:
Riot Announces Proposed Private Offering of $500 Million of Convertible Senior Notes.
Net proceeds from this offering to be used primarily to acquire bitcoin and for general corporate purposes.
Link to press release: https://t.co/z7xQaB9eC4.
— Riot Platforms, Inc. (@RiotPlatforms) December 9, 2024
This approach is consistent with similar techniques utilized by other public companies, where convertible notes have been used to support Bitcoin acquisitions. The offering reflects Riot’s financial flexibility as well as its belief in Bitcoin as a long-term asset.
The use of convertible senior notes to buy Bitcoin is a common practice among publicly traded firms. MicroStrategy, one of the most significant Bitcoin investors, has issued billions of dollars in convertible notes to fuel its massive Bitcoin acquisitions.
As of December 9, the firm has 423,650 bitcoins, which is equivalent to $42 trillion. To far, the corporation has spent about $25.6 billion on Bitcoin acquisitions.
Riot’s method is similar to this strategy, indicating a rising tendency among Bitcoin-focused startups to raise funding using financial instruments that combine loan and equity features. Riot gains access to large finance while simultaneously providing investors with flexibility by giving conversion options into cash, ordinary stock, or a mix of the two.
The $500 million sale enables Riot to increase its Bitcoin reserves. This move is consistent with its vertically integrated strategy and the further expansion of its mining operations in Texas and Kentucky.
Riot’s choice to use money from the Bitcoin acquisition demonstrates its conviction in the asset’s long-term value as digital gold. Riot intends to expand its position as a leader in the Bitcoin mining business by fortifying its balance sheet with what it sees as a robust and appreciating asset, which is a positive indication for retail investors.
Riot’s position in a competitive space
While Riot’s convertible notes structure provides rapid cash, changing them to shares may dilute shareholder value.
Unlike MicroStrategy, which is a business intelligence company with a strong focus on Bitcoin, Riot’s primary focus remains on Bitcoin mining and infrastructure. This expertise allows Riot to directly benefit from Bitcoin price swings while also improving its operational skills to support the crypto network as a whole.
The proposal also emphasizes Riot’s belief in its vertically integrated strategy, which includes the previously stated mining operations and engineering facilities in Colorado.
As the present bullish cycle continues, Riot’s ability to properly execute this approach will provide vital insights on its feasibility. The success of the offering will also be determined by market circumstances, investor confidence, and Riot’s ability to negotiate the associated hurdles.
Riot, like MicroStrategy, is banking on Bitcoin’s durability while also adding to the larger story of business acceptance in the cryptocurrency field.
SHIB burn rate shoots up 1000%, Shiba Inu coin to double soon?
The SHIB burn statistics revealed a 1000% increase, as approximately 50 million tokens were burned. Shiba Inu coin statistics suggest that the price will shortly double.
The Shiba Inu coin has once again piqued investor interest in a roaring Q4 bull market, owing to a noteworthy increase in the SHIB burn rate. On Tuesday, burn data showed a whopping 1000% increase, suggesting that the cryptocurrency’s supply was severely depleted. As a consequence, market participants anticipate big increases in the dog-themed meme coin, with further optimistic measures indicating that the asset’s price may soon double.
SHIB burn rate spirals 1000% sparking optimism as supply shreds
According to Shibburn’s most recent statistics, the SHIB burn rate increased by 1068% intraday, indicating that the token’s supply was significantly reduced. According to the statistics, 51.76 million coins were transferred to a null address, meaning that they were permanently withdrawn from circulation. As a result of the law of supply and demand, the broader market mood toward the digital asset became more positive.
Simultaneously, the weekly burn statistics indicated that 2.44 billion tokens were withdrawn from the circulating supply. With the enormous burns, the Shiba Inu coin’s entire market supply has dwindled to 589.25 trillion SHIB to date.
Meanwhile, another positive ecosystem development has boosted investors’ confidence in the cryptocurrency. Shibarium’s layer-2 network was launched 16 months ago, and the platform already has 2 million registered on-chain wallet addresses. Overall, the growing burn rate spike and more activity in Shibarium have sparked significant hope for the cryptocurrency during a Q4 bull market.
Shiba Inu coin to double soon?
Despite the aforementioned burn rate rise, the Shiba Inu (SHIB) price fell 15% intraday and is now trading at $0.00002646. The 24-hour low and high were $0.0002511 and $0.00003141, respectively. Nonetheless, the asset’s weekly chart showed gains of 16%, highlighting market potential in an overall optimistic environment.
Furthermore, a recent Shiba Inu coin price research identified another optimistic on-chain statistic, indicating that increases are coming. According to the study, the meme coin’s price might rise by 100% further as holder concentration stays at 73%, indicating the possibility for a pump ahead. Despite the token’s declining intraday movement, on-chain statistics paint a positive picture of the meme coin’s future.
Altcoins crash lead to $1.76B in crypto liquidations, what’s next?
Altcoins followed Bitcoin’s plunge below $95,000, with total crypto liquidations soaring for long holdings.
Along with the Bitcoin price decline, the larger altcoin market has corrected significantly, with prominent players like as Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) all correcting by 6-12%, resulting in huge crypto liquidations totaling $1.76 billion. With Bitcoin suffering numerous rejections at the $100,000 mark, investors are wondering if the altcoin party is over.
Altcoins see heavy dumping in broader market sell-off
Since September, this has been the quickest flush-out in cryptocurrencies as traders rebalance their holdings in search of buy-the-dip opportunities. Today’s Bitcoin price decline below $95,000 has resulted in increased liquidations in the wider crypto market.
Santiment, a blockchain analytics platform, discovered that cryptocurrencies that had made significant gains during the previous two months’ bull run had suffered significant losses in the last 24 hours.
However, it cautioned that if retail traders cave to panic and started selling their holdings, the market might quickly recover as buying chances appear. On the other side, crypto analyst IncomeSharks observed that the alt sector was able to continue the super trend, with experienced traders purchasing dips.
IncomeSharks is optimistic about the recent drop in cryptocurrency prices, viewing it as a potentially constructive event for the sector. “This is the most bullish thing to happen to altcoins,” the analyst stated. It also resulted in significant cryptocurrency liquidations, which currently total about $2 billion.
The analyst observed that the pullback helped the market to clean out fresh buyers while sustaining Supertrend support levels, a positive indication.
According to another crypto expert, Rekt Capital, the total altcoin market has been rejected at a historically high resistance level. However, the expert noted that the downturn may be less severe this time, suggesting that the $425 billion barrier level is weakening. This pattern may indicate increased momentum for a potential breakthrough in the near future.
Crypto liquidations soar to $1.76B
According to Coinglass statistics, cryptocurrency liquidations have increased to $1.76 billion in the previous 24 hours, with $1.58 billion in long liquidations and $185 million in short liquidations.
In a stunning turn of events, the cryptocurrency market saw tremendous volatility over the last 24 hours, with 583,647 traders liquidating across exchanges. The highest single liquidation order on Binance was $19.69 million for the ETH/USDT pair. Michael van de Poppe, a famous cryptocurrency expert, commented on the development:
“That’s the flash crash drop on altcoins. Some have dropped by 30% on the day. Don’t worry, this will reverse back fast, you’d want to see such a massive collapse and liquidity wipe. Onwards we go”.
Following today’s fall, Bitcoin’s dominance has increased somewhat. Crypto expert Benjamin Cowen noted a critical milestone in Bitcoin domination, stating that it has reached the previous wedge level when stablecoins are excluded. Cowen stated that as long as Bitcoin dominance remains below this threshold, altcoin-to-Bitcoin (ALT/BTC) trading pairings will be fundamentally stable.
At press time, the Bitcoin (BTC) price was trading 2.6% down at $96,905, with a market capitalization of $1.917 trillion. The 24-hour Bitcoin liquidations have increased to $189 million, including $149 million in protracted liquidations.
According to the technical chart, Ethereum’s price has fallen 6.62% to $3,684. Crypto market specialists feel that these dips are still opportunities to purchase, since ETH may reverse its trend again.
