Riot Platforms secured a credit line of $100 million, backed by bitcoins, from Coinbase
These funds will be used for strategic projects and general corporate purposes, while the interest rate on the financing received will be at least 7.75%.
Author: Francisco Rodriguez | Edited by: Parikshit Mishra Updated: April 23, 2025, 4:28 PM Published: April 23, 2025, 1:34 PM
Key points:
- Mining company Riot Platforms has signed a $100 million loan agreement with Coinbase Credit.
- The organization confirmed that the funding will be used for strategic projects and general corporate purposes.
- The loan has a floating interest rate of at least 7.75% per annum, a repayment period of 364 days, and is secured only by a portion of Riot's Bitcoin reserves.
Bitcoin (BTC) mining company Riot Platforms (RIOT) has signed a $100 million loan agreement with Coinbase's lending arm, using bitcoin as collateral to provide short-term funding for its ongoing expansion.
The publicly traded mining company said in a press release that it intends to use the loan within the next two months. The deal provides Riot, which holds 19,223 BTC worth over $1.8 billion, with a line of credit that allows it to avoid issuing new shares.
“This credit facility is an important component of our efforts to diversify our funding sources to support our operations and strategic growth initiatives in order to create long-term shareholder value,” said CEO Jason Les.
The loan issued by Coinbase Credit comes with a variable interest rate: borrowers will pay at least 7.75% interest per annum, which is defined as the greater of 3.25% or the federal funds rate cap plus 4.5%. The loan term is 364 days, although Riot can request a one-year extension if Coinbase agrees.
The credit facility is secured by a portion of Riot's total bitcoin reserves, and the company said it intends to use the funds “to pursue key strategic initiatives and overall corporate goals.”
Coinbase has also conducted similar transactions. Last week, medical technology company Semler Scientific (SMLR) announced a deal with Coinbase to receive cash through a loan secured by its bitcoin.
Hut 8 (HUT), another Bitcoin miner, has also previously used a Bitcoin-backed line of credit from Coinbase.
