Riot Platforms Doubles Credit Facility to $200 Million with Coinbase

Riot Platforms, a prominent Bitcoin mining company, has successfully increased its credit facility with Coinbase Credit from $100 million to $200 million. This expansion, which doubles the initial commitment, is secured by a portion of Riot's Bitcoin holdings, which will be held as collateral by Coinbase Credit. The terms of the facility remain unchanged, with an interest rate calculated as the greater of the federal funds rate or 3.25%, plus an additional 4.50%. The facility is set to mature in 364 days, with an option for a further 364-day extension, subject to Coinbase's approval. The funds will be utilized for strategic initiatives and general corporate purposes, providing Riot with the financial flexibility to pursue its growth objectives.

This upsizing of the credit facility is a strategic move by Riot Platforms to enhance its financial position and support its ongoing operations. By leveraging its Bitcoin holdings as collateral, Riot has secured additional funding without diluting its equity. This approach allows the company to maintain control over its strategic direction while accessing the necessary capital to execute its plans. The decision to use Bitcoin as collateral underscores the growing acceptance of cryptocurrencies as a viable asset class for financing purposes.

The collaboration between Riot Platforms and Coinbase Credit highlights the deepening relationship between traditional financial institutions and the cryptocurrency industry. Coinbase, as a leading cryptocurrency exchange, brings a wealth of expertise and credibility to the partnership, providing Riot with a reliable source of funding. This alliance not only benefits Riot but also reinforces Coinbase's position as a key player in the cryptocurrency ecosystem, offering financial services that cater to the unique needs of companies operating in this space.

The upsized credit facility is expected to bolster Riot's ability to invest in new technologies, expand its mining operations, and explore other strategic opportunities. With the additional capital, Riot can accelerate its growth trajectory and solidify its position as a leading player in the Bitcoin mining industry. The company's focus on strategic initiatives and general corporate purposes suggests a well-rounded approach to utilizing the funds, ensuring that all aspects of its business are supported.

Riot Platforms has been a major buyer of Bitcoin in addition to mining BTC. Earlier this month, Riot Platforms released the first quarter 2025 financial results, which revealed that the company held 19,223 Bitcoins after adding 1,530 coins during the quarter. During the first quarter, Riot Platforms announced the acquisition of Rhodium’s mining operations, which had 125 MW of power. As a result, Riot Platforms increased its Bitcoin mining hashrate to 33.7 EH/s by the end of the first quarter. The company’s increased support for the Bitcoin network has played a crucial role in the stabilization process, which has significantly prevented the 51 percent attack and thus attracted more institutional investors.

In summary, Riot Platforms' decision to upsize its credit facility with Coinbase Credit to $200 million is a significant development that underscores the company's commitment to growth and innovation. By leveraging its Bitcoin holdings and partnering with a reputable financial institution, Riot has secured the necessary funding to pursue its strategic objectives and maintain its competitive edge in the rapidly evolving cryptocurrency landscape.