Riot Platforms, Inc., a leading Bitcoin mining company, has announced on April 23, 2025, that it has secured a $100 million credit facility with Coinbase Credit, Inc., which is a subsidiary of Coinbase Global, Inc. With this development Riot can borrow money from this loan facility over a 2-month period after the agreement is finalized.
No Specific Project to be Picked up by Riot with this Funding
This financial initiative marks Riot’s first Bitcoin-backed financing that provides non-dilutive funding. The mining company has not yet disclosed any specific projects it will prioritize with the $100 million credit facility from Coinbase.
The company has simply stated that it intends to use the funds to pursue “key strategic initiatives and general corporate purposes.” The loan carries an interest rate calculated as the greater of the federal funds rate upper limit or 3.25%, with in additional 4.5%, resulting in a minimum annual rate of approximately 7.75%.
The facility matures 364 days after the effective date and the company also has an option to extend it for another 364 days subject to Coinbase’s consent. The loan here is secured by a portion of Riot’s Bitcoin holdings.
Expert Comments
Jason Les, CEO of Riot, has highlighted the importance of this credit facility in diversifying the company’s financing sources to support operational and growth strategies, all of this while making sure that it enhances a long-term shareholder value. The CEO stated, “The company has entered into its first bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing. This credit facility is a key part of our efforts to diversify sources of financing to support our operations and strategic growth initiatives, with a view towards long-term stockholder value creation.”
About Riot Platform, Inc.
Riot Platform is a company that is specialized in Bitcoin mining and electrical infrastructure. The company is operational in Texas, Kentucky, Denver, and Houston and with these facilities, the company wishes to become the leading player in Bitcoin-driven infrastructure by bringing innovation and community partnerships together.
This financial deal between the mining company and Coinbase aligns with Coinbase’s growing trend of offering bitcoin-backed credit facilities to institutional clients which is supporting the expanding crypto infrastructure.
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