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Bitcoin miner Riot Platforms has reported a 4% increase in Bitcoin production for December 2024, mining 516 BTC compared to November. The company’s CEO, Jason Les, confirmed the progress as Riot continued to expand its operational hash rate.
Bitcoin Miner Riot Platforms Reports Increase in BTC Mining
Bitcoin miner Riot Platforms has announced that it has completed the first 400 MW of the development phase of its Corsicana Facility in December. Although all the systems are up and running and miners are present, the company has adopted a gradual approach to commissioning. This move follows, BTC miner MARA move of lending 7,377 Bitcoin (BTC) to third parties, constituting 16% of its total reserves of 44,893 BTC.
This step will help in maintaining BTC mining power quality and stability of the grid which are a part of Riot’s sustainability initiatives. Some of the hashrate has been held back by the commissioning process, but overall things are still on schedule.
According to Jason Les, “We are happy to report that the last of the systems have been put in place at the Corsicana Facility thus ending the first 400 MW development phase.” Operationally, the hash rate growth was the primary driver that contributed to the December production, which is in line with its focus on efficiency and production.
Riot Platforms Hash Rate Soars 155% Surge
Riot Platforms also made significant achievements in 2024 where it had a 155% increase in the hash rate that it deployed as compared to the previous year. The network hash rate increased by 52% over the same period, while Riot’s deployment was even faster than this growth.
During 2024, the company mined a total of 4,828 BTCs at an average net power cost of $0.034 kWh. During this period, Riot, concurrently, leveraged power curtailment credits and participated in demand response programs with ERCOT and MISO to reduce energy costs and support grid stability.
As of the end of the year, Bitcoin miner Riot had 17,722 BTC, which is 141% more than at the end of December 2023. This growth also translated into a 39% increase in Bitcoin yield per fully diluted share, which the company considers to be one of the key parameters of shareholder value creation. According to Riot, this is due to efficient operations and a good approach to Bitcoin purchase.
Bitcoin Mining Industry Sees Competitive Advancements
While Bitcoin miner Riot Platforms showcased its gains, other leading mining companies also reported significant updates in December. CleanSpark Inc., another major U.S. Bitcoin miner, achieved a milestone with an operating hash rate of 39.1 EH/s at the end of 2024.
CleanSpark mined 668 BTC in December, bringing its total production for the year to 7,024 BTC. CleanSpark also expanded operations into three new states and announced plans to reach 50 EH/s by mid-2025.
Bitcoin miner Core Scientific, meanwhile, reported a self-mining output of 291 BTC in December, operating a fleet with a hash rate of 19.1 EH/s. The company also provided hosting services for customer-owned miners, which produced an additional 18 BTC. Core Scientific focused on energy-efficient operations, achieving a fleet efficiency of 24.6 J/TH.
Amid these announcements, Bitcoin price has experienced notable movement during December, with BTC price briefly reaching $102,227 as of press time. This surge followed a purchase announcement from MicroStrategy, which added 1,070 BTC to its corporate treasury.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Riot Platforms, one of the well-known players in Bitcoin mining, has announced its significant expansion in cryptocurrency holdings by acquiring 667 BTC worth around $67.5 million.
The company is a dedicated miner operating North America’s largest mining facility. With a market capitalization of approximately $4.41 billion, the company is among the largest and most prominent stocks within the Bitcoin mining sector.
Riot Platforms Cements Leading Position as a Major Bitcoin Miner with New Bitcoin Purchase
Bitcoin mining company Riot Platforms announced it added more BTC to its portfolio. According to its official announcement, the company utilized proceeds from the recent issuance of $594 million in 0.75% convertible bonds to purchase 667 BTC at approximately $101,135.
The purchase reportedly cost approximately $67.457 million. This will increase the miner’s total Bitcoin balance to 17,429. Based on the current market price of approximately $104,229, its total market value is now approximately $1.8 billion. The acquisition happened just after, a few days ago, company said it bought a total of 5,113 BTC for approximately $510 million.
With the additional proceeds from Riot’s upsized $594 million, 0.75% coupon convertible bond issue, the Company has acquired 667 BTC at an average price of $101,135 per BTC. As a result, Riot has increased its holdings to 17,429 BTC, currently valued at $1.8 billion based on the… pic.twitter.com/t68Uy8nbHU
— Riot Platforms, Inc. (@RiotPlatforms) December 16, 2024
The announcement comes around the same time MicroStrategy confirmed acquisition of an additional 15,350 BTC worth $1.5 billion, its sixth acquisition in six weeks. From the latest purchase, MicroStrategy will have a total holding of 423,650 Bitcoins. Primarily a business intelligence and cloud computing services provider, MicroStrategy has been one of the longstanding corporate advocates for cryptocurrency, especially now that Executive Chairman Michael Saylor sees the largest cryptocurrency as an inflation hedge and much superior to any other investment tool.
Riot Platforms, meanwhile, is a focused miner operating the most significant mining facility in North America. With a market capitalization of about $4.41 billion, this miner represents one of the larger stocks within the sector.
Meanwhile, the price of Bitcoin once again moved past $105,000 on Monday, gaining 2.9% to reach $105,801.
$525 Million For Bitcoin Domination
In addition to its BTC acquisition, Riot Platforms has focused on securing its future growth through a $525 million convertible senior notes offering. That’s more than previously planned $500 million.
The convertible notes, as per the conversion terms into equity, give the company flexibility and liquidity to address market opportunities effectively. The company has deployed the proceeds to purchase additional BTC, enhance operational expansion, and explore advancements in mining efficiency. This audacious fundraising strategy stamps this company’s commitment to outpacing an industry rife with rapid innovation and volatility.
Strong Operational Performance Riot’s November 2024 production results further underscore its position as a leader in the crypto mining space. The company successfully mined 495 Bitcoins, demonstrating consistent operational efficiency and scalability. The miner’s increasing hash rate—a key measure of mining power—reflects its determination to strengthen its foothold in the competitive mining industry.
The company has been proactive in investing in renewable energy partnerships, further situating it as a sustainable player in the crypto space. This makes the company resonate with environmentally conscious investors who have concerns regarding the consumption of energy in mining.
Teuta Franjkovic
Teuta is a seasoned writer and editor with over 15 years of expertise in macroeconomics, technology, and the crypto and blockchain sectors.
She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*.
Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain’s potential, viewing cryptocurrency as one of humanity’s most transformative innovations.
Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin miner Riot Platforms announced plans to raise $500 million to accelerate its BTC buying strategy. The firm revealed on Monday that it proposed a private offering of $500 million worth of convertible senior notes due 2030 for qualified institutional investors. Notably, the proceeds received from these offerings are to be used to purchase the mentioned digital asset.
In response, the broader market reflected substantial optimism over the flagship crypto’s future movements.
Bitcoin Miner Riot Platforms Announces $500M Private Offering Igniting Optimism
Riot Platforms has recently announced that it intends to offer $500 million aggregate principal amount of its convertible senior notes due 2030 only to qualified institutional investors, to use the proceeds to purchase BTC. Furthermore, the mining company also seeks to offer the initial purchasers of the notes an additional $75 million aggregate principal amount of the notes, within a three-day period beginning on and including the date on which the notes are first issued.
However, the offering remains subject to market and other risk conditions, and there can be no guarantee as to whether, when, or on what terms the offering may be completed. Per the announcement, the notes will mature on January 15, 2030. Altogether, the Bitcoin miner’s endeavor has reverberated significant market optimism for the coin, underscoring heightened buying should the proposed private offering conclude.
Also, it’s worth mentioning that the Bitcoin mining firm MARA acquired $130 million worth of the same crypto recently, further bringing buying pressure to it. Although these events ignited an optimistic torrent, the flagship coin continues to face market resilience after hitting an ATH above $100K.
Is BTC Price Still Bullish?
At the time of reporting, BTC price slipped 1% intraday and was sitting at $98,804. Its 24-hour low and high were $97,986.82 and $1,01,399.98 respectively. While the coin’s intraday movement shows a waning action, the weekly and monthly charts indicated gains worth 3% and 30%, respectively. This broader rising trajectory comes against the backdrop of a bullish Q4 post-Donald Trump’s reelection.
Nevertheless, a recent report by CoinGape revealed that the crypto’s price encountered rejection as long-term holders have offloaded massive amounts in the last 30 days. This chronicle has raised contrasting market sentiments, with investors apprehensive.
Also, the Bhutan government recently sold $40 million worth of the same crypto, adding to concerns despite the massive buying by mentioned Bitcoin miner companies. Crypto market enthusiasts continue to eye the asset for further price action shifts amid riveting developments across the landscape.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin miners Riot Platforms Inc. and Bitfarms have reached a settlement agreement after months of hostile negotiations following the former’s planned takeover bid. This development comes ahead of a Special Meeting of Bitfarms Shareholders on Nov 6. Both companies’ stock prices are out of the red zone with some market participants projecting movements with other stocks.
Riot and Bitfarms Reach Agreement
In a Sept 23 release, Riot Platforms Inc and Bitfarms disclosed a settlement ahead of the former’s special shareholders meeting in November. This agreement seeks a pathway to the long-stretching takeover bid by Riot Platforms. The agreement includes changes to the Board structure of Bitfarms described by parties as a significant step to the future.
Per the release, Andres Finkielsztain stepped down from the company’s Board while Amy Freedman was appointed as well as serving in other committees. On Riot’s part, it will withdraw its previously filed requisition and maintain a halt through the Bitfarms 2026 annual meetings. Riot also has the right to purchase shares in the company provided it holds up to 15% of its shares.
“At the Special Meeting, shareholders will be asked to approve an expansion of the Board from five members to six members, to elect an independent director nominated by the Board to serve as the sixth member of the Board, and to ratify the Company’s July 24, 2024, shareholder rights plan. Riot has agreed to vote in favor of these matters.”
A Takeover Crisis
The hostile takeover attempt led to several back-and-forths between both Bitcoin miners. Riot attempted to acquire Bitfarms through an unsolicited $950 million offer before buying the company’s stock in a bid to gain control. The Canadian mining giant rejected the offer criticizing Riot for refusing to engage constructively.
Bitfarms made a move to acquire Stronghold Digital Mining in a $164 million deal according to sources familiar with the matter. At press time, the stock prices of both companies are making gains on the heels of the agreement and wider market sentiment. BITF trades at $2.05, a 2.5% growth in the last 24 hours.
David Pokima
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Riot Platform’s Vice President of Research Pierre Rochard lauded the decentralized nature of Bitcoin creating a space for differing political dynamics. This solution creates for network rules to remain consistent and enforce without centralized intermediaries. Over the years, crypto users have pointed to blockchain decentralized systems to solve inherent problems with traditional finance
Rochard Hails Network Architecture
Pierre Rochard, a pro-Bitcoin executive restated views of the community in contrast to traditional finance models amid the recent adoption of crypto assets. In a July 13 post on X (formerly Twitter) noted that the decentralized nature of Bitcoin creates antagonism where players have limited incentives to unify. In addition to ensuring a lack of central control, it ensures a set of consistent rules across the board.
“In contrast, #Bitcoin operates as a peer-to-peer (p2p) decentralized network, where the political dynamics differ significantly. Within the Bitcoin network, the tendency is towards decentralized antagonism, where various tribes and individuals have little incentive to unify. This decentralized nature means there is no single entity with overarching control.”
Furthermore, the Riot Platform executive noted that the Bitcoin template as set out by Satoshi Nakamoto creates a solution that individuals gravitate towards driven by path dependency. In contrast to the decentralized antagonism, traditional systems work together creating monopolies. As Rochard highlighted, they operate as geographic monopolies of violence. This system has led to users having limited options in finance. In addition, it leaves little room for widespread innovation, unlike decentralized systems.
Traditional political systems typically operate as geographic monopolies on violence, exerting centralized control and unity over a defined territory. These systems consolidate power to maintain order and enforce laws through a central authority.
In contrast, #Bitcoin operates…
— Pierre Rochard (@BitcoinPierre) July 13, 2024
Bitcoin Model Drives Adoption
In the last decade, Bitcoin adoption has soared leading to an increasing price action. This year the assets hit an all-time high above $73,000 before corrections. Users have become attracted to Bitcoin for several reasons including its utility as a store one value and hedge against inflation. In addition to these, others are gleaned from the decentralized nature of the network and its price action over the years. Along the line, it earned the title as the digital gold.
Also Read: Why Chainlink (LINK) Price is Struggling Despite Big Whale Interactions?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin miner Riot Platforms has pulled a $2. 30 per share bid for Bitfarms (NASDAQ: BITF), instead, wants to obtain three board seats to continue its process of buying the bitcoin mining company.
Earlier, Riot had offered $950 million for the acquisition, which was rejected by Bitfarms and thus Riot sought board changes to continue with the talks.
Bitcoin Miner Riot Aims for Board Changes
Riot Platforms said on Monday that is has pulled out from the acquisition process, instead, the company is now aiming to change the board of directors of Bitfarms. Riot Investment Trust, which owns almost 15% of Bitfarms, said such a decision is impossible as the current board of directors’ governance blocks constructive discussion.
Thus, Riot’s statement stressed that boardroom changes are necessary in order to have a serious talk about the possibility of a merger.
Riot has nominated three candidates for the Bitfarms board: John Delaney, former mayor of Jacksonville, Florida; Amy Freedman, former CEO of Kingsdale Advisors; and Ralph Goehring, former CFO in the energy sector. These nominations are for increasing the independence and corporate governance on the board of directors of Bitfarms.
Riot Requisitions Special Meeting
Riot has called for a shareholder’s meeting at Bitfarms to discuss the governance matters. This meeting will also bring the vote to oust Bitfarms Chairman and Interim CEO Nicolas Bonta and director Andrés Finkielsztain. Post this announcement, the Bitfarms stock price declined by 5% to $2.94.
Riot alleges that these persons and any director appointed after Emiliano Grodzki’s recent departure to the Company are handling the poor governance and the failure to unlock the value of Bitfarms.
Concurrently, Riot has proposed the removal of these directors and the appointment of its own to regain shareholder confidence and bring new ideas to the table in regards to the possible merger.
Previous Acquisition Efforts and Poison Pill Defense
The effort made by Riot in trying to acquire Bitfarms has seen a lot of strategic steps and counter steps. Riot had earlier in June increased its holding in Bitfarms to 13.1% by acquiring six million shares at a cost of more than $111 million. This happened at a time when there was leadership changes at Bitfarms where the CEO Geoffrey Morphy had resigned from his position and Nicolas Bonta had been appointed as the acting CEO.
In response, Bitfarms adopted a shareholder rights plan, also known as a ‘poison pill,’ which would deny any person or entity from purchasing more than 15% of the company without the approval of the board of directors. Riot’s CEO Jason Les opposed this plan saying that this plan does not meet the 20% standard commonly observed in such cases and is legally questionable.
The acquisition of Bitfarms by Riot is part of a larger trend in the Bitcoin mining industry, which is being shaped by changes in the economic environment after the 2024 Bitcoin Halving event. This event has led to a decline in mining rewards and as such companies are joining forces and merging to ensure they are profitable enough to mine.
Read Also: Bitcoin Miner Riot Platforms Plans Bitfarms Acquisition Via $950M Deal
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Riot Platforms offers $950M to acquire Canadian Bitcoin miner Bitfarms.
- Bitfarms is facing leadership turmoil amid CEO Geoffrey Morphy’s lawsuit.
- The merger would create largest publicly listed Bitcoin miner by capacity.
Riot Platforms, a prominent Bitcoin miner and Bitfarms’ largest shareholder, has made a hostile takeover offer of $950 million for Bitfarms, a Canadian Bitcoin mining company.
Riot’s buyout offer represents a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24, 2024.
Shareholders to own 17% of Bitfarms after Riot’s takeover
Riot Platforms, already the largest shareholder in Bitfarms with a 9.25% stake, had initially approached Bitfarms’ board with a private offer on April 22.
However, following the rejection of the offer, Riot has now taken the proposal public.
The deal would involve a combination of cash and common stock, with Bitfarms shareholders standing to own approximately 17% of the merged entity.
Bitfarms’ disputes with former CEO
The timing of Riot’s bid coincides with a period of transition and turmoil within Bitfarms’ management. The company has been grappling with the departure of its CEO, Geoffrey Morphy, who was dismissed in May amidst a legal dispute.
Morphy’s abrupt exit and subsequent lawsuit against Bitfarms for breach of contract and wrongful dismissal have raised questions about the company’s leadership stability and governance practices.
Riot Platforms has seized upon these developments to assert its case for the acquisition, alleging that certain directors, including Bitfarms’ co-founders Nicolas Bonta and Emiliano Grodzki, may not be acting in the best interests of shareholders.
Riot has pledged to push for the addition of new, independent directors to Bitfarms’ board through a special shareholders meeting scheduled after the company’s upcoming Annual General and Special Meeting on May 31.
Bitfarms’ disappointing earnings compared to Riot Platforms
Notably, Bitfarms’ disappointing earnings in 2023, despite a costly technical upgrade, have contributed to its vulnerability.
Analysts had expected better performance post-Bitcoin halving, but Bitfarms’ April earnings dropped 29% year-on-year.
In contrast, Riot reported a 131% increase in net income in Q1 2024, reaching $211 million.
If successful, the combined entity would emerge as the largest publicly listed Bitcoin miner, boasting significant self-mining and power capacities.
Riot Platforms envisions leveraging this enhanced scale and operational efficiency to drive future value creation for shareholders and strengthen its competitive position in the burgeoning cryptocurrency mining industry.
- TBC and Riot Platforms sue EIA over Bitcoin data demands, alleging intrusion.
- Senator Warren’s involvement is seen as part of a broader political strategy.
- Bitcoin mining faces scrutiny for energy consumption, environmental impact.
In a bold move against the US Energy Information Administration (EIA), the Texas Blockchain Council (TBC) and crypto miner Riot Platforms have filed a lawsuit, alleging unlawful data collection demands targeting the Bitcoin mining sector.
EIA’s data collection plan
Last month, the EIA announced plans to collect data on electricity consumption by certain US-based crypto miners, effective from early February. Commercial miners were mandated to disclose intricate details, including the types of machines used and the locations of their mining operations. The controversial move followed an emergency approval from the Office of Management and Budget on January 26.
We’re initiating collection of data regarding #electricity use by US #cryptocurrency miners.
We’ll ask about their electricity consumption so we can better understand their energy demands.
https://t.co/gYpZgtiD6J pic.twitter.com/pQ9ULoLAAU
— EIA (@EIAgov) January 31, 2024
TBC, a non-profit association, expressed concerns over the sensitive nature of the information requested, fearing potential public disclosure. The council sees this as a direct assault on private businesses, characterizing it as a political manoeuvre under the guise of an emergency.
The TBC points fingers at Senator Elizabeth Warren and the Biden administration, accusing them of orchestrating a targeted effort against the digital asset industry. The EIA’s push for oversight is viewed as an intrusion and a worrying escalation in monitoring and regulating the cryptocurrency sector.
As part of a broader strategy, Senator Warren and other Democratic lawmakers had previously urged major US crypto mining companies to disclose their energy usage. The current legal action represents a firm industry backlash against what is perceived as increased regulatory scrutiny.
Bitcoin Mining realities and environmental considerations
The EIA, in a report dated February 1, highlighted a significant jump in annual electricity consumption by crypto miners, from 0.6% to 2.3%. Despite the benefits of Bitcoin mining, such as network decentralization and profit opportunities, the industry faces growing scrutiny due to its environmental impact.
The Rocky Mountain Institute estimates global Bitcoin mining consumes around 127 terawatt-hours annually. This has sparked debates about the environmental sustainability of the industry. Proponents argue that compared to traditional sectors like banking, Bitcoin’s energy usage is relatively lower, but critics remain concerned about its contribution to global energy consumption.
As the legal battle unfolds, the cryptocurrency industry finds itself at the crossroads of regulatory pressures and environmental accountability, navigating the delicate balance between innovation and responsibility.
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