Riot Platforms Leverages Bitcoin as Collateral for $100M Coinbase Credit Line—Because Who Needs Traditional Banks?

In a move that cuts out middlemen and embraces crypto-native finance, Riot Platforms secures a short-term $100 million credit facility from Coinbase—backed entirely by Bitcoin. No fidgety paperwork, no legacy bank delays—just cold, hard BTC doing double duty. The deal highlights Bitcoin’s growing role as institutional collateral... and makes you wonder why anyone still bothers with a 30-day wire transfer in 2025.

Bitcoin miners facing pressure on multiple fronts

While Riot claims it is raising capital through the credit facility to maintain shareholder value, the move might also reflect the struggles miners are facing currently. According to the latest Bitwise report, Bitcoin miners are facing a new challenge in the form of tariffs.

The report noted that US mining firms account for 40% of global Bitcoin mining hashrate, and they now face tariffs varying between 24% and 46% to import machines from countries such as Malaysia, Thailand, and Vietnam. Riot had to accelerate the shipment of mining equipment to beat the initial tariffs deadline.

Bitcoin miners are always facing a series of challenges, with Bitcoin hash price, which determines the profitability of miners, falling below $50 while hashrate and mining difficulty are relatively high.

Beyond the problem with profitability, publicly traded miners are also seeing less interest from investors as new ways continue to emerge for those seeking exposure to Bitcoin. Spot exchange-traded funds (ETFs) and stocks of companies with corporate Bitcoin strategies offer other alternatives for these investors.

Coinbase is offering Bitcoin-backed loans to institutions

Meanwhile, Coinbase has been busy offering Bitcoin-backed credit facilities to public companies. Riot is the second company to get such loans in the past few weeks, with health tech and Bitcoin corporate treasury company Semler Scientific reaching a similar agreement last week.

Semler Scientific disclosed at the time that it would borrow money from Coinbase to buy more Bitcoin and add to its stash once it finalizes its settlement with the Department of Justice.

Coinbase had also given a $15 million loan to Bitcoin miner Hut 8 in January, increasing its credit facility to the company to $65 million. The funds were expected to be used for the firm’s general operations.

Interestingly, Coinbase is now planning to apply for a federal banking license in a move that could see it become like traditional commercial banks. The exchange confirmed it was considering it, even though it has not applied yet. If it does, it will not be the only one, as several other crypto firms are also looking to do the same thing.

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