Riot Platforms secures $100M ‘Bitcoin-backed’ loan from Coinbase

Riot Platforms has used its massive Bitcoin stockpile as collateral to secure a $100 million credit facility from Coinbase as the cryptocurrency miner eyes continued expansion. 

The $100 million loan from Coinbase’s credit arm marks Riot’s “first Bitcoin-backed facility,” CEO Jason Les said in an April 23 statement.

Les said the credit line will be used to fund general corporate operations and support the company’s “strategic growth initiatives.”

The credit line is scheduled to mature in one year’s time, but could be extended for an additional year. The loan carries an annual interest payment of at least 9%, based on the current upper limit of the federal funds rate plus 4.5%. 

Crucially, the funding amount “will be secured by a portion of [Riot Platforms’] total Bitcoin holdings,” the company said.

Riot owns the third-largest corporate Bitcoin (BTC) treasury, with 19,223 BTC on its books as of April, according to industry data. At current prices, its Bitcoin holdings are valued at roughly $1.8 billion.

As Cointelegraph reported, Riot acquired $500 million worth of Bitcoin in December. Earlier in the month, the company unveiled plans to raise $500 million through a private bond offering to fund additional BTC purchases. 

Related: Bitcoin miner Bitfarms secures up to $300M loan from Macquarie

Shares of Riot Platforms, which trade on the Nasdaq stock exchange under the ticker symbol RIOT, rose more than 8% on April 23 amid a broad rally for Bitcoin miners and the overall stock market.

However, like other Bitcoin mining stocks, RIOT has struggled since the start of the year, weighed down by the global trade war and falling cryptocurrency prices.

Industry research has tracked a strong correlation between mining stocks and Bitcoin’s price going back to at least 2020.

Currently trading at around $93,000, Bitcoin is down approximately 15% from its peak following US President Donald Trump’s inauguration. Over the same period, RIOT shares have fallen by more than 40%.

Despite share price volatility, Riot Platforms is coming off a record year of earnings and revenue, having successfully bolstered its operations after the Bitcoin halving.

In 2024, the company generated $376.7 million in sales and $109.4 million in net income. 

The company will hold its next earnings call on May 1, covering the quarter ending March 31.

Related: BTC miners adopted ‘treasury strategy,’ diversified business in 2024: Report