Bitcoin miner Riot Blockchain (RIOT) filed a prospectus with the 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 $500M 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 the bitcoins it mines, meaning the need for occasional capital raises to fund operations and expansion. Most recently, the company in November completed a $600 million ATM offering.
- In a recent presentation, Riot said it held 5,783 bitcoin 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 miner peers on Friday afternoon, down 2% while names like Marathon Digital (MARA) and Hut 8 (HUT) are posting moderate gains.
Read more: Riot Blockchain Sees 2022 as Year of Consolidation in Bitcoin Mining Sector