TLDR
- Riot Platforms secured a $100 million credit facility from Coinbase using its Bitcoin holdings as collateral
- The loan has an interest rate of 4.5% plus the federal funds rate upper limit or 3.25% (whichever is higher)
- Riot plans to use this funding for strategic growth initiatives without diluting stockholder value
- Riot holds 19,233 BTC worth nearly $1.8 billion, making it the third-largest corporate Bitcoin holder
- The broader Bitcoin mining industry faces challenges including tariffs on mining equipment and record-high mining difficulty
Riot Platforms, a major Bitcoin mining company, has entered into a $100 million credit agreement with cryptocurrency exchange Coinbase. The company will use its substantial Bitcoin holdings as collateral for the loan, according to an announcement made on April 24, 2025.
The credit facility will be accessed through staged withdrawals over a two-month period until the full amount is drawn. Riot confirmed that the capital will support its expansion efforts and other corporate priorities without diluting stockholder value.
This marks Riot’s first Bitcoin-backed loan facility. The terms include an annual interest rate based on the higher of the federal funds rate upper limit or 3.25%, plus an extra 4.5%. The credit line matures in 364 days, though Riot can request a one-year extension subject to Coinbase’s approval.
Strategic Use of Bitcoin Treasury
Riot Platforms is leveraging its large Bitcoin treasury for this financing deal. The company currently holds 19,233 BTC, valued at nearly $1.8 billion at current prices. This makes Riot the third-largest corporate Bitcoin holder among publicly traded companies.
“Riot has entered into its first Bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing,” said Riot CEO Jason Les in a statement. “This credit facility is a key part of our efforts to diversify sources of financing to support our operations and strategic growth initiatives, with a view towards long-term stockholder value creation.”
Coinbase has been expanding its institutional lending services since launching them in 2020. The exchange sees growing demand for financing across various client segments, including corporations, miners, hedge funds, and active traders.
“Coinbase’s financing capabilities have been an important service for our institutional client base since we launched them in 2020,” a spokesperson for Coinbase Institutional stated. “From corporates and miners, hedge funds, active traders and liquidity providersāeven our high net worth franchiseāwe see demand for financing only growing.”
Industry Challenges Mounting
The loan comes at a challenging time for the Bitcoin mining sector. According to a recent Bitwise report, miners face two major headwinds, especially those operating in the United States.
U.S. tariffs on mining equipment imported from Vietnam, Thailand, and Malaysia have greatly increased hardware costs. These import duties range from 24% to 46%, making equipment upgrades more expensive and reducing profit margins for mining operations.
Simultaneously, mining difficulty has surged to record levels. This technical measure indicates how hard it is to mine a block of Bitcoin. As a result, hashpriceāa key indicator of miner earningsāhas dropped to around $48, down from over $60 earlier in the year.
Investor interest is also shifting away from mining stocks. The rising popularity of Bitcoin exchange-traded funds (ETFs) and corporate treasury holdings has created simpler ways for investors to gain exposure to Bitcoin, resulting in less interest in mining company stocks.
These industry pressures are reflected in Riot’s stock performance. While shares of RIOT closed up 5.34% on the day of the announcement at $7.50, they remain down more than 36% over the past year of trading.
Riot isn’t the only mining company turning to Coinbase for financing. Hut8, another publicly traded Bitcoin miner, previously borrowed $50 million from Coinbase in 2023. In January 2025, Hut8 amended its credit facility, increasing the total amount to $65 million.
Riot Platforms is also exploring other avenues for growth. In February, the company announced it was evaluating potential partnerships in artificial intelligence and high-performance computing, particularly at its Corsicana Facility in Navarro County, Texas.
The mining company’s stock recovered slightly on news of the Coinbase loan, but like many in the sector, continues to face long-term pressures as the industry evolves and adapts to changing market conditions.
