Riot Platforms Stock Rises After It Buys $500 Million in Bitcoin -- Barrons.com

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By Mackenzie Tatananni

Riot Platforms said Friday it expanded its Bitcoin holdings, days after MicroStrategy snapped up more of the world's largest token.

Riot said it acquired 5,117 Bitcoin for roughly $510 million between Dec. 10 and Dec. 12, representing an average price of $99,669 per Bitcoin. This brings Riot's total holdings to 16,728 units of digital currency, as disclosed in the company's latest 8-K filing with the Securities and Exchange Commission.

Shares of the crypto-mining company were up 9.7% to $13.53 Friday, on track for their highest close since Nov. 12, according to Dow Jones Market Data. The stock has gained 10% over the previous two days.

Riot's announcement comes after MicroStrategy said it had acquired around 21,550 Bitcoin between Dec. 2 and Dec. 8 for roughly $2.1 billion in cash, or $98,783 per Bitcoin. The software company now owns a total of 423,650 Bitcoin.

While MicroStrategy is best known as a provider of business intelligence and cloud computing services, the company has a years-long history with cryptocurrency. Executive Chairman Michael Saylor chose to invest in Bitcoin in 2020 as a wager against inflation, describing it as "a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash."

Riot, on the other hand, is a dedicated Bitcoin miner. The company owns and operates North America's largest mining facility. It is also one of the largest stocks in the category, with a market cap around $4.1 billion.

Bitcoin topped $100,000 on Monday, rising 4.7% to $101,028 and marking the second time it passed six figures. The digital currency was trading at $101,169 on Friday, according to data from CoinDesk.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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December 13, 2024 13:32 ET (18:32 GMT)

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