Riot Platforms Lands $100M Coinbase Deal, Backed by Bitcoin

In a press release, Riot Platforms stated that it secured a short-term loan agreement of $100 million with Coinbase Credit, a subsidiary of the crypto exchange. Riot used a portion of its Bitcoin holdings as collateral for the deal.

Jason Les, the company’s CEO, said this marks Riot’s first Bitcoin-backed facility, providing them with attractive terms and diversified sources of financing for business operations and strategic growth initiatives.

According to the loan terms: 

• Riot can access the funds over a two-month period following the agreement’s effective date. 
• The interest rate on borrowed amounts will be the greater of either the federal funds rate upper limit or 3.25%, plus an additional 4.50%. 
• The credit facility will expire 364 days after the effective date, but Riot can request an extension for another 364 days, pending Coinbase’s approval.

Riot Platforms is one of the largest Bitcoin miners and the third-largest publicly listed Bitcoin holder after Strategy and Marathon Digital Holdings (MARA). According to Bitcoin Treasuries, Riot currently holds 19,223 Bitcoins, worth over $2.6 billion.

Riot’s operations are primarily based in Texas, where it runs one of the largest Bitcoin mining facilities in North America – the Rockdale facility –  capable of supporting over 700 MW of developed power capacity.

The company’s business model centers on acquiring and operating cutting-edge mining hardware to maintain efficiency and scalability. Its mining strategy emphasizes accumulating Bitcoin as a core treasury asset, aligned with its long-term vision of Bitcoin as a hedge against inflation and traditional market instability.

At the end of 2024, the company announced plans to issue $500 million in convertible notes to increase its Bitcoin holdings. Riot’s vision is to reinvest in infrastructure and technology, aiming to become the world’s leading Bitcoin-driven infrastructure platform. Recent investments include the acquisition of Block Mining for $92.5 million and capacity expansion in Corsicana, Texas. 

The agreement with Coinbase reflects a broader practice among Bitcoin mining companies of using their crypto holdings as collateral to access liquidity. As market conditions shift, credit facilities such as this may become a more common part of how firms handle financing and operational planning.