Riot Platforms Secures $100M Bitcoin-Backed Loan from Coinbase

Riot Platforms, a leading Bitcoin mining company, has secured a $100 million credit facility from Coinbase Credit, a subsidiary of Coinbase Global. This loan, backed by a portion of Riot's substantial Bitcoin holdings, is aimed at supporting the company's strategic growth initiatives and general corporate purposes.

Announced on April 23, 2025, this agreement marks Riot's first Bitcoin-backed credit facility. Under the terms, Riot can draw funds over a two-month period following the agreement's effective date. The loan carries an annual interest rate based on the greater of the federal funds rate (currently at 3.25%) or 3.25%, plus an additional 4.5%, resulting in a minimum interest rate of 7.75%. The facility is set to mature 364 days from the effective date, with an option for Riot to request a one-year extension, subject to Coinbase's approval.

Riot's CEO, Jason Les, emphasized the strategic importance of this 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." By leveraging its Bitcoin reserves for collateral, Riot aims to access liquidity without issuing new equity, thereby avoiding shareholder dilution.

As of April 2025, Riot holds 19,223 BTC, valued at approximately $1.8 billion, making it one of the largest corporate holders of Bitcoin. This substantial reserve not only underscores the company's commitment to the cryptocurrency but also provides a robust asset base to support its financial strategies.

The collaboration with Coinbase Credit reflects a growing trend of institutional Bitcoin-backed financing. Coinbase has been expanding its lending services, allowing users to borrow against their Bitcoin holdings without selling them. These loans are facilitated through the Morpho protocol on Coinbase's Base blockchain, offering flexible repayment options and competitive interest rates.

Riot's move comes amid a broader industry context where Bitcoin miners are seeking innovative financing solutions to navigate market volatility and capital-intensive operations. By securing this loan, Riot positions itself to capitalize on growth opportunities while maintaining financial flexibility.

In December 2024, Riot had previously raised $525 million through a convertible senior notes offering, using the proceeds to purchase additional Bitcoin. This latest credit facility complements Riot's ongoing efforts to strengthen its balance sheet and expand its operational capacity.

The partnership between Riot Platforms and Coinbase Credit illustrates the evolving landscape of cryptocurrency finance, where traditional financial mechanisms are increasingly integrated with digital asset strategies. As the industry matures, such collaborations are likely to become more prevalent, offering companies like Riot the tools to drive growth while managing risk effectively.