Why Riot Platforms Stock Tumbled by 14% Today

The price of Riot Platforms (NASDAQ: RIOT) stock cooled on the first trading day of the week, on the back of a sliding Bitcoin (CRYPTO: BTC) price and news of a fresh round of capital-raising by the cryptocurrency miner. Riot closed the day 14% lower in price, comparing unfavorably to the relatively mild (0.6%) decline of the benchmark S&P 500 (SNPINDEX: ^GSPC).Several days ago, the crypto world was watching breathlessly as Bitcoin teased the fabled $100,000 mark. It finally crashed through that barrier, and then... the excitement started to melt away. Since then, the price has retreated to under that level, casting some gloom throughout the cryptoverse. Bitcoin remains the 300-pound gorilla of this asset class, and any altcoin or company heavily associated with it tends to move in concert with its price. What compounded this for Riot on Monday was its announcement that it aims to raise $500 million in new capital. This is to be done through a private placement of convertible senior notes that come due on Jan. 15, 2030. The company added that it expects to grant the initial buyers of the securities -- which can convert to equity under certain conditions -- an option to purchase up to a collective $75 million worth of the notes.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool