In a document filed with the U.S. Securities and Exchange Commission (SEC) on Thursday, Bitcoin (BTC) mining company Riot Blockchain announced that it would be selling up to $ 500 million worth of common stock to fund overhead corporate expenses, such as working capital, repayment of corporate commitments, capital expenditures and acquisitions, and investment in existing and future projects.
Following the bid, the company would have more than 139 million units of common stocks outstanding, giving it a market cap of close to $ 3 billion at Friday’s prices. The company is authorized to issue 170 million units of common stock in total.
Currently, Riot Blockchain operates a set of Antminers produced by Bitmain Technologies. The company expects its Bitcoin miners to grow to more than 80,000 by the fourth quarter of 2022. Riot Blockchain projects its mining power to grow to about 7.7 exahash per second, which theoretically would be. account for 3.8% of the total hash exchange rate of the Bitcoin network. Its mining platforms are concentrated at the company’s Whinstone facility in Rockdale, Texas, possibly due to the state’s inexpensive electricity costs.
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Last October, Riot Blockchain said it tripled its Bitcoin production year after year and then amassed $ 194 million in BTC. However, the company’s production was a big hit in February when it briefly closed 99% of its operations as a winter storm approached Texas. At the end of 2021, Riot Blockchain owned nearly $ 834.6 million in tangible book value, mainly due to its plant, property and mining equipment.