 If you are holding riot shares, make sure to watch this video because its recent shelf offering might affect your investment drastically. Riot Blockchain, a Bitcoin mining company, just filed a shelf offering for up to $600 million worth in new shares. What is a shelf offering? A shelf offering gives a company the flexibility to take care of paperwork now and then offer shares only when in need of cash or when market conditions are favorable. There could be many reasons why a company would do that, but in Riot's case it looks like they just wanna raise some money for their new Texas location because they wanna expand. Now you could ask yourself the question, why doesn't Riot just sell some Bitcoin, use that money and expand the company? That's a fair question, but to be honest it's financially smarter for the company to use a shelf offering because that allows them to sell the shares whenever they want, literally whenever they want. In the SEC filing, Riot stated that it will sell shares from time to time after the effective date of this registration statement. Couldn't be more accurate, right? So with the current trajectory of Bitcoin hitting $100,000 by the end of the year, it wouldn't make any financial sense to sell any Bitcoin at this moment. Instead, if Bitcoin actually hits $100,000 by the end of the year, Riot's share price will also increase in value, which is probably the time when Riot decides to sell off some shares to raise some money. With that knowledge, we can expect a completely different balance sheet within Riot, but we have absolutely no idea when it's gonna happen. So is this situation good or bad for shareholders? In my opinion, it really depends on your investment strategy. Are you in their short-term or long-term? For me personally, this shelf offering didn't help me at all to achieve my financial goals with this investment. My initial plan was to just have an option with Riot and basically riot it all the way up and use the momentum from Bitcoin, collect the premium, and then by the end of the year, sell my Riot shares. And obviously that didn't happen. After Riot announced the shelf offering, it immediately dropped in value. And not only did Riot's share price drop, my entire portfolio dropped drastically, which I didn't like. It also reduced the value of my call option expiring in December, because I'm very bullish on Bitcoin, still has nothing to do with Riot. So that call option is cut in half. So as you can imagine, I'm not too happy about the shelf offering. Here is the bright side though. I believe that after the uncertainty, and as soon as we get more information about the shelf offering, when they're gonna sell it, we see the moves, we see the expansions in Texas. I think the share price will bounce back, will recover in the short-term. Long-term, I believe it's a very smart move from Riot, because now they have money to invest into the expansion of the Texas location. They can increase their hash rate. They can mine even more Bitcoin in the future. And I'm a strong believer that Bitcoin will increase in value over time. So long-term for Riot, it's a good move. Therefore, I believe everybody who is in there for the long run, I believe the shelf offering right now doesn't have a really big effect on the long-term investment. I also believe that after the completion of the offering, we will probably see a very good performance of Riot, but we don't know when this is gonna happen. So like I said, short-term, I believe that Riot will underperform what I expected it to do this year. But long-term, I believe it will just do fine. Nevertheless, let's look at Riot's Q2 results, which are far from bad. Riot announced it produced $19.3 million net income for the three-month period, compared to a loss of $10.6 million the prior year. In August 2021, Riot produced 441 Bitcoin, an increase of approximately 451% over its August 2020 production of 80 Bitcoin. This year until August, the company produced a total of 2,051 Bitcoin, which is an increase of approximately 221% over its production during the same period in 2020, which was 639 Bitcoin. As of August 2021, Riot holds approximately 3,128 Bitcoin, all of which were produced by self-mining operations. These Bitcoin currently have a value of about $147 million. Based on these numbers, you can see that Riot is constantly growing, and if they're actually using the shelf offering, that money that they're raising for aggressive expansion, I think that's just amazing for long-term investors. Here's what I will be doing for the next couple months with the information that I gathered. Since there is this dark cloud above my head that could start pouring at me any moment, I'm gonna start selling options on Riot again, just to collect some premium while I'm holding the stock. And if I get assigned and I have to sell my shares, I don't mind at all. I will just start another option wheel strategy until the end of the year. This way, I can benefit from the upswing if it actually happens. If not, I will just collect premiums every single week. Don't get me wrong. I haven't lost any money with this investment, and I still believe that long-term it will be a good investment. I personally don't want to wait that long though, especially because I have over $100,000 invested in Riot. I don't wanna have that money sit in my account and not produce any money. Therefore, the option wheel strategy where I will just sell covered calls every week to just collect some premiums. As most of us, I don't like uncertainty, and that's why I wanna get to work and put that money to work again. I don't wanna wait and hope for it to increase in value when Bitcoin will have the last bullish move. I'd rather start making money now. To sum this video up, if you're holding Riot shares, I believe in the short-term, it will underperform for the rest of the year. Long-term, I believe it's a very good move to just invest into the Texas location, increase the hash rate, and start mining more Bitcoin every month. As always, I appreciate your time. Thank you so much for watching. Have a great day.