Riot Platforms Plans $500 Million Convertible Bond Offering
Riot Platforms, Inc. (NASDAQ: RIOT), a cryptocurrency mining company, experienced a 5.8% decline in its stock price today following the announcement of a private offering for $500 million of convertible senior notes due in 2030. The offering, targeted at qualified institutional buyers, also provides purchasers with an option to acquire an additional $75 million of notes within three days from the issuance date.
The unsecured senior notes from Riot will mature on January 15, 2030, and include provisions for earlier redemption, repayment, or conversion under certain conditions. Riot reserves the right to fully or partially redeem the notes in cash after January 20, 2028, provided certain conditions are met, including the existence of at least $50 million in aggregate principal amount of notes that remain unpaid and unredeemable.
The conversion of the notes into cash, Riot's common stock, or a combination thereof is at the company's discretion. However, conversions will be subject to certain events and time periods before June 15, 2029, and will then be possible at any time until the second business day before the maturity date. The initial conversion rate and other terms will be determined during the pricing of the offering.
The proceeds from this offering are intended for the acquisition of additional bitcoin and general corporate purposes. The common stock of Riot that may be potentially issued upon conversion related to the offering and sale of the notes will not be registered under the Securities Act of 1933 or any state securities laws. Therefore, these securities cannot be offered or sold in the United States without registration or an applicable exemption from registration requirements. This offering will be made through a private offering memorandum to persons believed to be qualified institutional buyers in accordance with Rule 144A of the Securities Act.
This news is based on a press release statement and reflects the company's current plans for capital raising through the private issuance of convertible notes.