EddieJayonCrypto
24 Apr 25
Bitcoin miner Riot Platforms secured a $100 million Bitcoin-backed credit facility from Coinbase Credit, using part of its Bitcoin holdings as collateral. The funds will support strategic initiatives, with borrowing subject to annual interest of 4.5% plus the federal funds rate or a minimum of 3.25%...
Riot Platforms has secured a $100 million Bitcoin-backed credit facility from Coinbase Credit, leveraging part of its Bitcoin holdings as collateral to fund strategic growth initiatives.Borrowing under this facility is subject to annual interest of 4.5% plus the federal funds rate or a minimum of 3.25%, whichever is higher. Riot CEO Jason Les emphasized this non-dilutive financing as a vital move to diversify funding sources.Other publicly traded Bitcoin miners like Hut8 have also utilized Coinbase’s credit facilities, with Hut8 increasing its facility from $50 million to $65 million recently.A Coinbase Institutional spokesperson noted rising demand for financing across institutional clients, including corporates, miners, hedge funds, active traders, and liquidity providers.Following news of the credit facility, Riot shares rose 5.34% to $7.50, despite a 36% decline over the past year. Riot holds 19,223 BTC, valued at approximately $1.8 billion. Meanwhile, Coinbase shares increased 2.53% to $194.80 but remain down 17.6% over the last year.This financing move highlights Riot Platforms’ strategic aim to support operations and growth without diluting shareholder equity, tapping into established crypto lending channels as the industry evolves.