Bitcoin Mining Giant Abandons Full-Hold Strategy, Unloads $40M In Crypto

Summary

Riot Platforms sold 475 Bitcoin for $38.8 million in December, averaging $81,731 per coin. This sale occurred after Bitcoin's fourth halving event, which reduced mining rewards from 6.25 to 3.125 Bitcoin per block, tightening profit margins for miners. In April, Riot mined 463 Bitcoin, a 13% decrease from the previous month, while maintaining computing power. The company utilized 12 Bitcoin from reserves to complete the sale. CEO Jason Les stated that selling Bitcoin helps reduce shareholder dilution by minimizing the need for new share issuance. Riot retains 19,211 Bitcoin valued at approximately $1.8 billion. The overall mining sector faces increased competition and rising costs, with network difficulty reaching nearly 120 trillion hashes, a 35% increase from last year. Despite Bitcoin's 45% value increase over the past year, it remains below its January peak of $109,000, pressuring mining companies to balance immediate cash needs with future price speculation.