Wednesday, November 30, 2022

Riot Blockchain Aims To Sell Up To $500M In Stocks

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Riot Blockchain aims to sell up to $500 million in stocks and the proceeds from the offering will be used for general corporate purposes that will include investments in future projects so let’s read more in today’s latest blockchain news.

Bitcoin miner Riot Blockchain aims to sell up to $500 million in stocks according to a filed prospectus with the US SEC for the sale of up to $500 million in shares from time to time which is known as an “at-the-market” offering. The underwriters are B. Riley Securities, Cantor Fitzgerald, Roth Capital Partners, BTIG, D.A Davidson, Northland Securities, and Macquarie Capital.

The company has about 116.7 shares outstanding as per the filing and if the entire $500 million was offered at the current stock price, the share will increase by 20% to 140 million. With that being said, the prospectus is a shelf registration which means there’s no present intention to sell immediately all of the securities that are registered. Riot mainly holds the BTC it mines which means the company issues equity for occasional capital raise to fund the operations and expansion.

Riot said that it held 5,783 BTC on the balance sheets and that will be worth more than $267 million at the current BTC price of $46,200. Riot is underperforming most of the mining peers on Friday afternoon but it is down by 2% as the stocks of Marathon Digital and hut 8 are seeing some moderate gains.

As recently reported, Riot Blockchain paid $25 million in cash and another $25 million worth of Riot shares to purchase ESS Metron. One of the leading crypto mining companies in the US Riot Blockchain BTC miner acquired ESS Metron for $50 million and as a result, the latter will provide a strong infrastructure supply for the new mining machines of Riot. The news was announced in a press release by the US SEC and the total amount of the transaction equals $50 million as the BTC mining company paid $25 million in cash and the rest was covered with 715,413 shares of Riot common stock. The mining company expects to benefit from the deal by using the company’s highly engineered electrical equipment solutions as Riot plans to expand to 700 MW.

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