Riot Platforms Announces $500 Million Stock Offering To Fund Capex, Bitcoin Mining Projects: RIOT Stock Edges Lower Pre-Market

• In its latest update, the company stated that it produced 428 Bitcoins in November, down 14% year-on-year.
• The total number of Bitcoins held by the company stood at 19,368, up 70% from the same period a year ago, but only four units higher than in October.
• Riot also sold 383 Bitcoins in November, generating $37 million in net proceeds, compared with $46 million from the sale of 400 Bitcoins in October.

Riot Platforms Inc. (RIOT) on Wednesday announced that it has entered into a definitive agreement for a $500 million offering of its common stock.

In a filing with the U.S. Securities and Exchange Commission (SEC), Riot stated that its sales agents may sell shares through the Nasdaq Capital Market as part of its at-the-market offering, at prevailing market prices.

Riot shares were down nearly 1% in Wednesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.

Use Of Proceeds

The company said that it intends to use the net proceeds from this offering to meet its capital expenditure requirements and for future strategic acquisitions.

It also added that it may use these funds to invest in current and future data centers, Bitcoin (BTC) mining projects, and stock buyback programs. Apart from this, Riot said it intends to meet its general corporate and working capital requirements with the net proceeds of its $500 million stock offering.

Riot’s Production Update

In its latest update, Riot stated that it produced 428 Bitcoins in November, down 14% year-on-year. The total number of Bitcoins held by the company stood at 19,368, up 70% from the same period a year ago, but only four units higher than in October.

Riot also sold 383 Bitcoins during November, garnering $37 million in net proceeds. It sold 400 Bitcoins in October, netting $46 million. The average price of Bitcoins sold by the company during November fell sharply to $96,560, from $114,970 during the previous month.

Bitcoin prices were hovering at $88,870 at the time of writing, up more than 1% over the past 24 hours. Retail sentiment on Stocktwits about the cryptocurrency trended in the ‘bearish’ territory.

RIOT stock is up 24% year-to-date and 21% over the past 12 months.

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