Riot Platforms launched a new $500 million market share offering this week as Bitcoin miners reported a drop in production in November and continued to sell a large portion of their monthly production to fund operations and expansion.
Riot said in a filing with the U.S. Securities and Exchange Commission yesterday that it has entered into a definitive sales agreement that allows it to issue and sell up to $500 million of common stock at prevailing market prices through the Nasdaq Capital Market.
The facility replaces a previous over-the-counter program established in August 2024 that Riot ended on Tuesday.
Under the new agreement, Riot retains discretion over the timing and amount of stock sales. The company said the proceeds will be used for capital expenditures, potential strategic acquisitions, investments in existing and future data centers and Bitcoin mining projects, and general corporate purposes.
The company also noted that the proceeds could fund share buybacks, as well as working capital needs.
Riot's Bitcoin Production
Riot sold approximately $600 million worth of stock under the 2024 agreement and subsequently terminated the agreement, leaving approximately $149.5 million in unused capacity. The new program resets the company's funding flexibility as it continues to expand its infrastructure in Texas. Shares fell nearly 1% in Wednesday trading.
This capital raise is accompanied by various monthly operating updates. According to the company, Bitcoin production in November was 428 bits, down 14% from the same month last year.
The company attributed the year-on-year decline to increased network difficulty and planned cuts related to its power strategy. As of the end of November, the total amount of Bitcoin held was 19,368 bits, an increase of 70% from the previous year, but an increase of only 4 Bitcoins compared to October.
Riot sold 383 Bitcoin during the month, generating a net profit of $37 million. This compares to October, when the company sold 400 Bitcoins for $46 million. The average realized sale price in November plunged to $96,560 from $114,970 the previous month, reflecting the rebound in Bitcoin prices during late fall trading.
At the time of writing, Bitcoin was trading around $88,000, up just over 1% on the day, and retail sentiment was also bearish.
Despite recent volatility, Riot stock is up 24% year-to-date and 21% over the past 12 months.
Institutional analysts continue to see long-term upside potential for Riot's infrastructure footprint. JPMorgan recently predicted the stock would rise 45% through 2026, citing expectations that the company could win a 600-megawatt colocation contract for its Corsicana site by the end of next year.
The company currently has approximately 1.7 gigawatts of power capacity across two large facilities in Texas, which analysts describe as a rare Tier 1 asset in the Bitcoin mining space.
This article originally appeared in Bitcoin Magazine and was written by Micah Zimmerman.
