Riot Platforms Launches New $500M ATM as Mining Margins Stay Tight

Riot Platforms has launched a new at-the-market (ATM) equity offering of up to $500 million, replacing its previous program as bitcoin mining profitability remains under pressure.

In a Form 8-K filing with the U.S. Securities and Exchange Commission, the company confirmed it terminated its prior ATM agreement from August 2024. Under that program, Riot sold approximately $600.5 million in shares, leaving about $149.5 million unused. Management opted to reset the structure rather than extend it.

The decision reflects ongoing challenges across the bitcoin mining sector. Hashprice, which measures expected revenue per unit of hashpower, has stayed compressed for months. As a result, internal cash generation remains limited, even for large publicly listed miners.

Hashprice pressure limits internal funding

According to estimates from TheMinerMag, Riot’s total hashcost reached roughly $38.5 per PH/s during the third quarter. This figure sits slightly above current network hashprice levels. That suggests Riot’s mining operations are running near breakeven or at a cash loss after operating costs.

Such conditions reduce the ability to self-fund expansion. Therefore, Riot increasingly relies on capital markets to maintain liquidity and financial flexibility.

The new ATM agreement expands the company’s group of sales agents, which now includes:

• Morgan Stanley
• Cantor Fitzgerald
• BTIG
• Macquarie Capital
• B. Riley Securities

Riot can issue shares incrementally at market prices and pause sales at its discretion.

Capital markets remain key for miners

Riot’s move highlights a broader industry trend. As mining margins remain thin, external funding has become critical not only for balance sheet support, but also for future strategic initiatives.

While Riot has not disclosed specific uses for the new capital, investors expect a portion could support diversification into high-performance computing and AI-related infrastructure. Still, the company’s near-term performance remains closely tied to bitcoin price dynamics, network difficulty and energy costs.

Until mining economics improve, equity issuance is likely to remain a central tool for large miners navigating the current market cycle.

Read also: Bitcoin Difficulty Signals Limited Miner Capitulation