Riot Blockchain has announced that it has entered into subscription agreements with accredited investors for the purchase of 1,644,444 restricted units of the company at a purchase price of $22.50 per unit. Each unit consists of one share of restricted common stock and one warrant to purchase one share of restricted common stock at an exercise price of $40.00 per share for a period of three years. The closing of the investment is subject to customary closing conditions, including approval of the listing of the securities on The NASDAQ Stock Market LLC.
The $37 million in gross proceeds from the Investment will be used for the expansion of the Company's Bitcoin mining operations, strategic investments, and general working capital.
Canaccord Genuity Inc acted as a financial advisor to the company on the transaction.
The blockchain is a decentralized and encrypted ledger that offers a secure, efficient, verifiable and permanent way of storing records and other information without the need for intermediaries. These protocols are the backbone of numerous digital currencies, including Bitcoin, Ethereum and Litecoin. Blockchain protocols have a wide range of use, including processing transactions, accounting, verification and proof of ownership across a far-reaching spectrum of applications.