Riot Platforms Sells $38.8M Worth of Bitcoin (BTC) to Weather the Post-Halving Storm

Jakarta, Pintu News – Riot Platforms, the second-largest listed Bitcoin (BTC) mining company, has announced the massive sale of their crypto assets.

In its latest operational report, the Colorado-based company revealed that it sold 475 Bitcoins (BTC) worth $38.8 million in December. This move follows the company’s previous actions to sell 420 BTC in November and 400 BTC in September, marking a total of 1,295 Bitcoins sold in the last three months of 2023.

The move comes in response to narrowing profit margins in the mining sector. A year after Bitcoin’s (BTC) fourth halving event, which occurred in March 2024 and halved the mining rewards, miners are currently receiving only 3.125 Bitcoin (BTC) per block.

This programmed cut increases the pressure on mining operations that depend on the flow of new tokens to finance increased expenses.

The World Economic Forum (WEF) has highlighted the significant decline in revenues and operations of mining companies. With reduced rewards and ever-increasing operational costs, many companies have been forced to revisit their financial strategies to stay afloat in the fierce competition.

Riot Platforms, also known as Riot Energy, is currently the second-largest Bitcoin (BTC) mining company on the U.S. stock exchange, trailing only Marathon Digital Holdings (NASDAQ:DHADJ).

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As part of its latest report, Riot stated that it mined 907 BTC in December, bringing the total to 20,049. The company also announced that it had sold 475 BTC at an average price of $81,814, generating net proceeds of $38.8 million.

Furthermore, Riot is planning to sell more of its Bitcoin (BTC) holdings in the coming months to fund its growth and operations.

Jason Les, CEO of Riot, explained that the monthly Bitcoin (BTC) sale is a strategic choice to fund the company’s growth and ongoing operations.

By selling cryptocurrencies, Riot can reduce the need to raise funds through the issuance of new shares, which in turn will reduce the shareholding of current shareholders.

This move is expected to minimize share dilution and provide greater financial stability for the company. While this may seem like a drastic move, it is part of a broader effort to maintain the company’s financial health amid volatile market conditions.

The network difficulty, which is a measure of how difficult it is to mine new Bitcoin (BTC), has reached nearly 120 trillion hashes as of May 4. This marks a 35% increase from the previous year, according to data from CoinWarz.

This increase shows that competition in Bitcoin (BTC) mining is getting tougher.

Riot Platforms, with its sales move, shows how Bitcoin (BTC) miners have to balance short-term cash needs with speculation about the future price of this most popular cryptocurrency.

At least for now, some big players are choosing to secure cash upfront rather than future potential.

In the challenging world of Bitcoin (BTC) mining, Riot Platforms’ decision to sell some of its assets reflects a strategy of adaptation in the face of market uncertainty.

This move reflects not only current conditions but also a long-term strategy of optimizing resources and minimizing risk.

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Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.