Coinbase Extends $100 Million Credit Facility to Riot Platforms with Bitcoin as Collateral

Riot Platforms, a leading Bitcoin mining company, has secured a $100 million credit facility from Coinbase, using its Bitcoin holdings as collateral. This strategic financial move is designed to support Riot’s expansion and corporate initiatives. The loan features an annual interest rate of 7.75%, tied to the federal funds rate plus a 4.5% premium, and is set to mature in 364 days. The deal is structured for a staged withdrawal over two months, providing Riot with flexible access to capital while leveraging its substantial BTC reserves. This arrangement highlights the growing intersection of traditional finance and cryptocurrency, as major players like Coinbase facilitate liquidity solutions for industry leaders like Riot Platforms.

Riot Platforms Secures $100 Million Loan from Coinbase Using Bitcoin as Collateral

Riot Platforms, one of the largest Bitcoin miners, has secured a $100 million credit facility from Coinbase, leveraging its massive BTC holdings as collateral. The deal, structured as a staged withdrawal over two months, will fuel the company’s expansion and corporate initiatives. With an annual interest rate of 7.75%—pegged to the federal funds rate plus a 4.5% premium—the loan matures in 364 days, though Riot may extend it for another year subject to Coinbase’s approval. The miner’s treasury boasts 19,233 BTC, valued at roughly $1.8 billion, cementing its position among the top institutional holders in the crypto ecosystem. The move underscores the growing intersection of traditional finance and digital assets, as major players increasingly deploy Bitcoin not just as a speculative bet but as a strategic financial tool.

Sovereign Wealth Funds Accumulating Bitcoin While Retail Exits

Sovereign wealth funds and large institutions were net buyers of Bitcoin in April 2025, contrasting with retail traders who reduced their exposure via ETFs and spot markets. John D’Agostino, Coinbase Institutional’s head of strategy, noted this trend during a CNBC interview. He compared Bitcoin to gold, emphasizing its role as a hedge against currency inflation and macroeconomic uncertainty. Key attributes like scarcity, immutability, and non-sovereign status reinforce Bitcoin’s safe-haven appeal for institutional investors.