Bitcoin miner Riot Blockchain files prospectus for $500 million stock sale

In a document filed with the United States Securities and Exchange Commission (SEC) on Thursday, bitcoin (BTC) mining company Riot Blockchain announced it would sell up to $500 million worth of common stock to fund general corporate spending such as to finance working capital, repayment of corporate debt, investments and acquisitions, and investments in existing and future projects.

Following the offering, the company would have more than 139 million common shares outstanding, giving it a market cap of nearly $3 billion at Friday’s prices. The company is authorized to issue an aggregate of 170 million common shares.

RIOT’s stock price has experienced volatility over the past 12 months. Source: TradingView

Currently, Riot Blockchain operates a fleet of Antminers manufactured by Bitmain Technologies. The company expects its bitcoin miners to grow to over 80,000 by Q4 2022. Riot Blockchain expects its mining performance to increase to around 7.7 exahash per second by then, which would theoretically account for 3.8% of the total hash rate of the Bitcoin network. Its mining rigs are concentrated at the company’s Whinstone facility in Rockdale, Texas, possibly due to the state’s low electricity costs.

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Last October, Riot Blockchain said it tripled its bitcoin production year-over-year, hoarding $194 million in BTC at the time. However, the company’s production took a major hit in February when it briefly halted 99% of its operations as a winter storm approached Texas. At the end of 2021, Riot Blockchain had a tangible book value of nearly $834.6 million, primarily from its assets, real estate, and mining equipment.