- Riot sells 475 BTC for $38.8M to reduce equity reliance
- Mining difficulty up 35% YoY, impacting profit margins
- Riot holds $1.8B in Bitcoin despite recent sell-off
Riot Platforms, the world’s second-largest publicly traded Bitcoin miner, has sold $38.8 million worth of Bitcoin to address current liquidity problems. Riot Platforms sold 475 Bitcoins in April which included its production for the entire month. The move comes as the Bitcoin mining industry continues to face pressure from revenue declines and increased operational expenses.
Riot Addresses Liquidity Hurdles Amid Profit Squeeze
The Castle Rock-based miner sold 475 BTC for $38.8 million at an average cost of $81,731 per Bitcoin. The sale comprised all the 463 Bitcoins mined in April and an additional 12 BTC from the company reserves. Riot Platforms sold the Bitcoin to fund company expansion and operations to reduce dependence on equity capital.
Riot’s mining operations continue to face challenges despite the recent surge in the price of Bitcoin which pushed it to trade near $94,000. In April, the company’s Bitcoin production saw a 13% decrease although its hash rate remained stable. Bitcoin Miners continue to face reduced profits due to increased mining difficulties and high energy costs.
Bitcoin Mining Difficulties
Riot’s mining difficulty experienced a 35% year-over-year(YoY) growth in April which added pressure on its operations. In April, Riot produced 463 Bitcoins a decrease from their production of 533 Bitcoins in the previous month. The drop in Bitcoin production rates results from the 2024 Bitcoin halving event and increased difficulties to solve Bitcoin mining puzzles.
Riot sold its Bitcoin production for April to strengthen its balance sheet. The company uses Bitcoin sales to prevent stock dilution from new equity capital campaigns. Riot still holds 19,211 BTC worth about $1.8 billion at the current market prices.
Institutional Bitcoin Demand
Riot’s 475 Bitcoin sale comes amid increased institutional interest in Bitcoin. Spot Bitcoin ETFs have received $5.5 billion from investors in the last three weeks. However, Riots sell-off could hurt long-term investor confidence despite high institutional demand for BTC.
Moreover, Riot has transferred $6.7 million worth of Bitcoin to NYDIG, a trusted institutional crypto custodian to manage liquidity. The transaction has sparked market speculation about the firm’s future Bitcoin sales.
Riot’s stock saw a 6% decrease to $7.90 on April 5, 2025. The miner remains committed to address the increased industry difficulties.