Riot Blockchain Raises Cash in Crypto-Craze
The bitcoin and blockchain craze continues. Riot Blockchain has announced that it is raising $37 million.
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The bitcoin and blockchain craze continues. Riot Blockchain Inc. (NASDAQ: RIOT), which is giving its investors exposure to both bitcoin and blockchain, has announced that it is raising $37 million.
The company has entered into subscription agreements with accredited investors and is selling 1,644,444 restricted units of Riot Blockchain at a purchase price of $22.50 per unit.
Each unit is made up of one restricted common share and one warrant. The warrants have an exercise price of $40 per share and they will expire in three years. Canaccord Genuity acted as a financial advisor to the company on the transaction.
Riot Blockchain indicated in the release that the $37 million in gross proceeds will be used to expand on its bitcoin mining operations, as well as for strategic investments and for general working capital.
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Investors, traders and speculators have remained active in bitcoin and other cryptocurrencies. Now the financial media is reporting on bitcoin and cryptocurrencies by the hour, often with guests who either seem confused about the technology or who are touting the endless benefits of blockchain and confusing the technology with bitcoin and cryptocurrency price gains.
Shares of Riot Blockchain did not even fall on the news of a capital raise. Shares closed at $36.47 on Monday and were up more than 13% at $41.31 early Tuesday. Keep in mind that Riot Blockchain has a 52-week range of $6.33 to $45.99, and its market cap without the consideration of the new shares and warrants was roughly $413 million.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
