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

Riot Platforms, one of the largest publicly traded Bitcoin mining firms, has signed a $100 million loan agreement with Coinbase's lending division

Riot Platforms, one of the largest publicly traded Bitcoin mining firms, has secured a $100 million loan from Coinbase's lending division, using Bitcoin (BTC) as collateral, reports CoinDesk.

The funds will be used to support strategic initiatives and general corporate purposes, including expansion and operational flexibility, Riot said in a statement.

"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.

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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.