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Coinpaprika 2024-12-17 08:51:36

Riot Platforms Buys $69M in Bitcoin, Hits 17,429 BTC

Riot Platforms has added 667 BTC to its Bitcoin holdings, spending $69 million at an average price of $101,135 per Bitcoin . This acquisition brings Riot’s total Bitcoin reserves to 17,429 BTC , valued at nearly $2 billion at current market prices. The announcement caused Riot’s stock to jump by 8%, showing strong investor confidence in its strategy. Riot, which began focusing on Bitcoin mining in 2018, operates from its Oklahoma facility and has since adopted a strategy similar to MicroStrategy's, led by Michael Saylor. This includes raising funds through share buybacks to expand its Bitcoin reserves. Riot’s Q4 Bitcoin yield stands at 36.7%, with a year-to-date yield of 37.2%, underlining steady growth despite share dilution. Other major Bitcoin investors are also making significant moves. Marathon Digital (MARA) recently purchased 11,774 BTC worth $1.1 billion, funded through a zero-coupon convertible note. Similarly, MicroStrategy announced its latest Bitcoin purchase, acquiring 15,350 BTC for $1.5 billion at an average price of $100,386. MicroStrategy’s total holdings now exceed $27.1 billion, with a Q4 Bitcoin yield of 46.4% and a year-to-date yield of 72.4%. MicroStrategy’s stock (MSTR) has surged nearly 500% this year, closely tracking Bitcoin’s performance. This massive growth has placed the company among the top 100 publicly traded firms in the United States. Michael Saylor remains vocal about Bitcoin’s role as a hedge against inflation and a valuable corporate asset. Recently, he posted on X (formerly Twitter): “Everyone buys Bitcoin at the price they deserve. BTC doesn’t wait. It simply transfers wealth to those who see.” While Saylor continues to encourage businesses to add Bitcoin to their balance sheets, not all companies are on board. Microsoft’s shareholders recently rejected a proposal to include Bitcoin in its treasury reserves. In contrast, Amazon’s shareholders have taken a different stance, suggesting that part of the company’s $88 billion cash reserves could be allocated to Bitcoin as protection against inflation. The growing interest in Bitcoin among companies like Riot Platforms, Marathon, and MicroStrategy highlights increasing institutional adoption. These firms are capitalizing on Bitcoin's potential as a long-term investment, despite ongoing debates about the risks of using equity and debt to fund large purchases. Riot’s recent acquisition reinforces its commitment to strengthening its Bitcoin reserves while benefiting from market optimism. This surge in corporate Bitcoin purchases signals a broader trend of traditional businesses shifting toward cryptocurrency as a store of value.

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