Riot Blockchain Files to Sell Up to $500M of Stock

Bitcoin miner Riot Blockchain (RIOT) filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for the sale of up to $500 million in shares from time to time, otherwise known as an “at-the-market” (ATM) offering.

The underwriters are Cantor Fitzgerald, B. Riley Securities, BTIG, Roth Capital Partners, D.A. Davidson, Macquarie Capital (USA) and Northland Securities.
The company currently has about 116.7 shares outstanding, according to the filing, and if the entire $500 million was offered at the current stock price, the share count would increase by about 20% to almost 140 million.
That being said, the prospectus is a “shelf” registration, meaning there is no present intention to immediately sell all the securities being registered.
Riot mainly hodls, or holds, the bitcoins it mines, meaning the company issues equity for occasional capital raises to fund its operations and expansion.
In a recent presentation, Riot said it held 5,783 bitcoins on its balance sheet as of March 1. That would be worth more than $267 million at the current bitcoin price of $46,200.
Riot is underperforming most of its crypto mining peers on Friday afternoon, down 2% as the stocks of Marathon Digital (MARA) and Hut 8 (HUT) are posting moderate gains.

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Aoyon Ashraf

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