According to the latest SEC filings, the Bitcoin mining company Riot Platforms purchased 667 BTC worth up to $69 million. The purchase was made at an average price of $101,135 per Bitcoin.
With this transaction, the total amount of Bitcoin held by Riot has increased to 17,429 BTC, valued at approximately $2 billion at current prices.
Riot is Monitoring MicroStrategy's Bitcoin Purchasing Strategy.
Riot first shifted its business direction to Bitcoin mining in 2018, operating from a facility in Oklahoma. The company then expanded its strategy, mirroring MicroStrategy President Michael Saylor's approach to purchasing Bitcoin and initiating stock buybacks to increase cryptocurrency reserves.
After this announcement, Riot's stock price has increased by nearly 8% today. The company's mining activities and Bitcoin purchasing strategy have significantly contributed to the increase in BTC acquired.
Riot also reported a Bitcoin profit margin of 36.7% for the fourth quarter to date, and profits achieved year-to-date are 37.2%. This margin indicates an increase in BTC holdings compared to the decline in stock price.
RIOT Stock Price on December 16. Source: Google Finance
The method of raising capital through stock warrants to buy Bitcoin remains a topic of debate. However, large mining companies like Riot and Marathon Digital (MARA) continue to apply this method.
Last week, MARA purchased 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 bought 15,350 BTC for a total value of $1.5 billion at an average price of $100,386 per Bitcoin.
After this transaction, MicroStrategy now owns BTC worth $27.1 billion. The company reported a Bitcoin profit margin of 46.4% for the fourth quarter and a year-to-date margin of 72.4%, reflecting their aggressive Bitcoin purchasing strategy.
MicroStrategy's (MSTR) stock has strongly reflected Bitcoin's growth this year, increasing nearly 500% year-to-date. This development has placed Michael Saylor's company among the top 100 publicly listed companies in the United States.
“People buy Bitcoin at the price they deserve. BTC doesn't wait. It simply transfers wealth to those who have seen,” Michael Saylor recently wrote on X (formerly Twitter).
Saylor has long encouraged public companies to add Bitcoin to their investment portfolios. Despite making several proposals, Microsoft shareholders have recently rejected the suggestion to include Bitcoin in the company's treasury.
However, their rivals, Amazon's shareholders, have a different perspective. They have proposed allocating a portion of Amazon's $88 billion cash reserves to Bitcoin as a hedge against inflation.