Bitcoin Hits New ATH as Major Institutions Ramp Up Accumulation

Bitcoin continues to set new highs, reaching $107,700 in the past 24 hours.

According to a filing with the US Securities and Exchange Commission (SEC), Bitcoin mining company Riot Platforms purchased 667 BTC for a total of $69 million. The transaction was made at an average price of $101,135 per Bitcoin.

The deal brings Riot’s total Bitcoin holdings to 17,429 BTC, or about $2 billion at current prices.

Riot Is Following MicroStrategy’s Bitcoin Buying Strategy

Riot began shifting its focus to Bitcoin mining in 2018 at its facility in Oklahoma. Since then, the company has expanded its strategy, inspired by MicroStrategy Chairman Michael Saylor’s Bitcoin buying method, and has also been buying back shares to increase its cryptocurrency reserves.

Riot shares rose nearly 8% on the day following the announcement. Combining its mining operations with its Bitcoin buying strategies, Riot has achieved impressive Bitcoin yields.

In addition, Riot reported a 36.7% increase in Bitcoin yields for the fourth quarter to date and a 37.2% annual yield. This reflects the growth in Bitcoin holdings versus the dilution of its shares.

The strategy of raising capital through stock rights to buy Bitcoin remains controversial. However, major mining companies such as Riot and Marathon Digital (MARA) continue to use this method.

Last week, Marathon Digital (MARA) purchased 11,774 BTC for $1.1 billion, using funds from a zero-coupon convertible bond issuance.

Meanwhile, MicroStrategy also announced its latest Bitcoin purchase today. The company purchased 15,350 BTC worth $1.5 billion, at an average price of $100,386 per Bitcoin. With this transaction, MicroStrategy now holds $27.1 billion worth of Bitcoin. The company reported a 46.4% Q4 Bitcoin return and a 72.4% full-year return, reflecting its aggressive Bitcoin buying strategy.