Riot Platforms, one of the largest publicly traded Bitcoin mining firms, has signed a $100 million loan agreement with Coinbase’s lending division, using Bitcoin (BTC) as collateral, according to a report by CoinDesk.
In a statement, Riot said the funds will be used to support strategic initiatives and general corporate purposes, including expansion and operational flexibility.
“This credit facility is an important part of our efforts to diversify financing sources to support our operations and strategic growth initiatives with the goal of creating long-term shareholder value,” said Jason Les, CEO of Riot Platforms.
Loan Terms and Purpose
The one-year loan carries a minimum interest rate of 7.75% and is set for 364 days, with the option for Riot to request a one-year extension pending Coinbase’s approval. The credit facility allows Riot to access working capital without issuing new shares, thereby avoiding potential shareholder dilution.
This financing approach reflects a broader trend among major Bitcoin holders to leverage their crypto assets for liquidity while maintaining exposure to price appreciation.
Riot’s Bitcoin Reserves
Riot Platforms currently holds 19,223 BTC, valued at approximately $1.8 billion, making it one of the largest corporate Bitcoin treasuries in the world.
The move also highlights Coinbase’s growing role as a crypto-native lender for institutional clients. In addition to Riot, Semler Scientific and Hut 8, another leading Bitcoin miner, have also secured BTC-backed loans from Coinbase.
Strategic Significance
This deal marks a significant step for Riot as it seeks to scale operations and capture more market share during Bitcoin’s current uptrend. By accessing debt capital through its BTC reserves, the company retains financial agility while continuing to capitalize on favorable mining economics.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/riot-platforms-secures-100m-bitcoin-backed-loan-from-coinbase/