Riot Blockchain, the Bitcoin (BTC) mining company, has announced that it would be selling up to $500 million worth of common stock to finance general corporate expenses, such as working capital, repayment of corporate obligations, capital expenditures and acquisitions, and investing in existing and future projects.
It has been reported that after the offering, the company would have more than 139 million units of common stock outstanding, giving it a market cap of close to $3 billion at last Friday's prices. The company is authorized to issue 170 million units of common stock in total.
However, currently, Riot Blockchain operates a fleet of Antminers manufactured by Bitmain Technologies. The firm expects its Bitcoin miners to grow to over 80,000 by the fourth quarter of 2022.
The report said that Riot Blockchain projects its mining power will grow to about 7.7 exahash per second by then, which would theoretically account for 3.8% of the total hash rate of the Bitcoin network. Its mining rigs are concentrated in the company's Whinstone facility in Rockdale, Texas, possibly due to the state's inexpensive electricity costs.
Thus, last October, Riot Blockchain said it tripled its Bitcoin production year-over-year and was, back then, hoarding $194 million in BTC. The company's production took a big hit in February when it briefly shut down 99% of its operations as a winter storm approached Texas. At the end of 2021, Riot Blockchain possessed close to $834.6 million in tangible book value, mainly due to its plant, property, and mining equipment.