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

Riot Platforms has obtained a $100 million loan from Coinbase, backed by its Bitcoin assets. This loan will fund general operations and growth strategies, with an interest rate of at least 9%. Holding 19,223 BTC, valued at approximately $1.8 billion, Riot is witnessing stock increases despite earlier financial losses. The company’s next earnings call is on May 1, 2024.

Riot Platforms has secured a $100 million credit facility from Coinbase by leveraging its significant Bitcoin holdings as collateral. This marks the company’s inaugural Bitcoin-backed loan, as confirmed by CEO Jason Les on April 23. The funds are intended to support general corporate operations and strategic growth initiatives.

The credit facility has a one-year maturity with the possibility of a one-year extension. The loan carries an annual interest rate of at least 9%, calculated as the current federal funds rate plus 4.5%. A portion of Riot Platforms’ Bitcoin holdings will secure the funding.

As of April, Riot Platforms possesses the third-largest corporate Bitcoin treasury, with 19,223 BTC valued at approximately $1.8 billion at current market prices. Recent acquisitions include $500 million worth of Bitcoin in December, and the company is contemplating raising an additional $500 million through a private bond offering.

On April 23, RIOT stock, traded on Nasdaq, saw an increase of over 8% amid a broader rally in Bitcoin mining stocks and the general stock market. Despite earlier struggles linked to the global trade environment and declining cryptocurrency prices, Riot Platforms recorded substantial earnings, generating $376.7 million in sales and $109.4 million in net income in 2024.

The firm’s upcoming earnings call on May 1 will review the quarter ending March 31, further detailing its financial performance in a fluctuating market region.