Riot Platforms Secures $100 Million Credit Facility Using Bitcoin as Collateral
Riot Platforms (RIOT) has secured a $100 million credit agreement with Coinbase’s credit arm, using bitcoin as collateral. This funding will support the company's expansion efforts.
- Riot plans to draw on this facility over the next two months.
- The company holds 19,223 BTC valued at over $1.8 billion.
- The credit facility aims to diversify financing sources without issuing new shares.
- CEO Jason Les emphasized long-term stockholder value creation.
- The loan features a variable interest rate starting at 7.75% annually.
- The term is 364 days, with a potential one-year extension.
- Funds will be used for strategic initiatives and corporate purposes.
Coinbase has engaged in similar agreements recently, including a deal with Semler Scientific (SMLR) for a bitcoin-backed loan. Hut 8 (HUT) has also utilized a similar credit facility with Coinbase.