Riot Platforms has secured a $100 million credit facility from Coinbase Credit, a subsidiary of Coinbase Global, Inc. The credit facility, Riot's first bitcoin-backed facility, will provide the company with non-dilutive funding at an attractive financing cost.
Key Points:
Purpose: Riot intends to use the proceeds from the credit facility for strategic initiatives and general corporate purposes.
Terms: The loan has a variable annual interest rate of at least 7.75%, calculated as the greater of 3.25% or the federal funds rate upper bound, plus 4.5%. It will mature 364 days after the effective date, with a possible one-year extension subject to Coinbase's consent.
Collateral: The loan is secured by a portion of Riot's total bitcoin holdings. As of April 2025, Riot held 19,223 BTC, valued at approximately $1.8 billion.
Strategic Importance: The credit facility is a key part of Riot's efforts to diversify funding sources, support operations, and pursue strategic growth initiatives, with a focus on long-term stockholder value creation.
Market Reaction: Following the announcement, shares of Riot Platforms (RIOT) rose more than 8% on April 23, amid a broad rally for Bitcoin miners and the overall stock market.
Key Points:
Purpose: Riot intends to use the proceeds from the credit facility for strategic initiatives and general corporate purposes.
Terms: The loan has a variable annual interest rate of at least 7.75%, calculated as the greater of 3.25% or the federal funds rate upper bound, plus 4.5%. It will mature 364 days after the effective date, with a possible one-year extension subject to Coinbase's consent.
Collateral: The loan is secured by a portion of Riot's total bitcoin holdings. As of April 2025, Riot held 19,223 BTC, valued at approximately $1.8 billion.
Strategic Importance: The credit facility is a key part of Riot's efforts to diversify funding sources, support operations, and pursue strategic growth initiatives, with a focus on long-term stockholder value creation.
Market Reaction: Following the announcement, shares of Riot Platforms (RIOT) rose more than 8% on April 23, amid a broad rally for Bitcoin miners and the overall stock market.
2 days ago
