Bitcoin Mining Giant Ditches Full-Hold Strategy, Sells $40M Worth of Crypto

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In a shocking turn of events, Riot Platforms has decided to sell off 475 Bitcoin, worth a cool $38.8 million, in December. The move comes as margins continue to shrink across the Bitcoin mining sector, much like a balloon losing air at a party. The Colorado-based firm, second only to some other miner that may or may not be taking notes, unloaded their crypto stash at a modest average price of $81,731 per coin. All this, according to Monday’s operations update—because, of course, updates are all the rage now.

Mining Profits Squeezed Post-Bitcoin Halving Event

The sell-off comes a year after the notorious fourth halving event, where Bitcoin’s mining rewards were halved—because who doesn’t love a little bit of self-inflicted pain? Miners are now pulling in a slim 3.125 Bitcoin per block, compared to the previous 6.25. That’s right, folks, less Bitcoin for the same amount of effort—sounds like a bargain, doesn’t it? With every four-year halving (because timing is everything), mining operations, which rely heavily on new tokens to pay their ever-growing bills, find themselves in a bit of a tight spot.

Riot managed to mine 463 Bitcoin last April, which is, unsurprisingly, 13% less than the month before, even though the computing power remained steady. But, never fear! The firm dipped into its reserves for the last 12 Bitcoin to close the deal and finish off the sale. Nothing like a rainy-day Bitcoin stash to make you feel a little bit better about your life choices, eh?

CEO Defends Strategy: ‘Shareholders Should Love Us for This’

Throughout April, Riot made the brilliant strategic choice to offload its monthly Bitcoin production. Why? To finance continued growth and keep the business afloat, according to Riot CEO Jason Les—because apparently, just printing more shares is too mainstream. By selling off Bitcoin, the company avoids diluting shareholder ownership, which is just another way of saying, “We’re keeping your precious stock as shiny as possible for now.”

Riot Announces April 2025 Production and Operations Updates.

“Riot mined 463 bitcoin in April as the network experienced two successive difficulty adjustments during the month,” said @JasonLes_, CEO of Riot. “April was a significant month for Riot as we closed on the acquisition…”

— Riot Platforms, Inc. (@RiotPlatforms) May 5, 2025

Even after the sell-off, Riot still has a whopping 19,211 Bitcoin in its balance sheet. That stash, valued at approximately $1.8 billion (at current prices, of course), goes to show that while they’re selling some off, they’re not exactly struggling. The good news is, they still have plenty left to keep the lights on and the mining rigs whirring. 💰


Mining Difficulty: Because Why Not Make It Harder?

The challenges facing Riot are a mirror to what’s happening in the wider Bitcoin mining world. The network’s difficulty level, which tells you just how tough it is to mine new Bitcoin, hit a dizzying 120 trillion hashes as of May 4. That’s a 35% jump from last year. Seriously, who thought this was a good idea? And here you thought your 5K run was tough. 🙄

With more miners scrambling for the same dwindling payouts, electricity and equipment expenses are skyrocketing, forcing miners to rethink their entire cash management strategy. After all, what could go wrong with increasing your costs just to chase a few more Bitcoin?

Despite Bitcoin’s recent 45% price surge (which is all well and good until it dips below $100K), it’s still far from its January peak of $109,000. So, while mining companies struggle with higher expenses and lower returns, it’s a game of chicken with the market. And for Riot, it seems cash today is better than a potential windfall tomorrow. Go figure. 🤷‍♂️

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2025-05-07 04:56