Riot Platforms Secures $100M Bitcoin-Backed Credit Line from Coinbase—Because Who Needs Banks?

Riot Platforms just flexed crypto’s growing financial muscle, locking in a $100 million credit facility backed by—you guessed it—Bitcoin. Coinbase plays banker in this deal, proving once again that traditional lenders are becoming optional.

Why it matters: This isn’t just another loan. It’s a strategic move by one of Bitcoin’s biggest miners to double down on growth without selling their stack. Smart move when you’re betting on ATHs.

The fine print: Terms weren’t disclosed (classic crypto opacity), but the facility reportedly gives Riot liquidity to scale operations while keeping BTC exposure. Because hodling is a religion.

Bottom line: When public companies start using Bitcoin as collateral at scale, it’s either financial innovation or a very elaborate Ponzi scheme. Either way, the suits are paying attention now.

• Riot secures a $100M Bitcoin-backed credit facility from Coinbase to fund growth .
• The credit facility is backed by Riot’s Bitcoin reserves.
• Loan terms include a 7.75% annual interest rate and 364-day maturity.

Riot Platforms, a Bitcoin mining company, has acquired a $100 million credit facility from Coinbase Credit. The deal provides Riot with a flexible credit line that supports operational expansion. Riot can access funds from the credit facility over a two-month period backed by its Bitcoin holdings.

Riot Acquires Credit From Coinbase

The credit facility enables Riot Platforms to draw loan funds in multiple two-month terms. Riot plans to use the funds toward business initiatives and overall corporate expenses. This financing approach allows Riot to maintain full ownership of its shares so it does not have to issue new shares to access the funds.

Riot Platforms Announces $100 Million Credit Facility with @Coinbase.

“Riot has entered into its first bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing,” said @JasonLes_, CEO of Riot. “This credit facility is a key part of… https://t.co/GWAbpWy2pY

Riot will pay an annual interest rate of 7.75% on the facility, determined by the higher value between the federal funds rate and 3.25% plus 4.5% additional interest. The debt will mature within 364 days effective from the date of the agreement but Riot can request a one-year extension. Riot’s Bitcoin reserves will serve as collateral to secure the borrowed amount.

The move supports the company’s plans to obtain funds from various sources without reducing shareholder ownership. Riot believes this facility is CORE to its future growth and creation of stockholder value. The company continues to pursue financing alternatives to support operational costs and future growth plans.

Bitcoin-backed credit facilities

Coinbase Credit continues to take part in similar deals which includes a recent agreement with Semler Scientific. Riot joins other Bitcoin miners such as Hut 8 which have obtained capital through Bitcoin-backed credit facilities. These methods offer alternatives to traditional funding which allows miners to borrow against their Bitcoin assets without new stock issuances.

Riot Platforms holds more than 19,000 Bitcoin worth over $1.8 billion. The extensive Bitcoin reserve provides the company adequate collateral to back its credit agreements. Riot utilizes its non-dilutive funding capabilities to strengthen its position in the competitive Bitcoin mining industry.

The partnership between Riot and Coinbase Credit comes amid increased demand for Bitcoin-backed financial products. These credit facilities allow Bitcoin miners to handle capital needs and curb the effects of market price fluctuations. These innovative financing options provide more flexibility during Bitcoin price fluctuations.