TLDR
Riot Platforms secured a $100 million credit facility from Coinbase using its Bitcoin holdings as collateral
The loan carries an annual interest rate of 4.5% plus the higher of federal funds rate upper limit or 3.25%
Riot holds 19,233 BTC worth nearly $1.8 billion, making it the third-largest corporate Bitcoin holder
The funds will support operations and strategic growth initiatives according to CEO Jason Les
Bitcoin miners face industry challenges including increased tariffs on equipment and record-high mining difficulty
Bitcoin mining company Riot Platforms has entered into a $100 million credit agreement with Coinbase, using a portion of its substantial Bitcoin holdings as collateral. The company announced on April 24, 2025, that the facility will be accessed through staged withdrawals over two months until the full amount is drawn.
The loan represents Riot’s first Bitcoin-backed financing arrangement and comes as miners face growing challenges in the industry. The company plans to use the funds to support its operations and strategic growth initiatives.
Riot currently holds 19,233 Bitcoin worth approximately $1.8 billion, making it the third-largest corporate Bitcoin holder among publicly traded companies. This treasury serves as security for the new credit facility.
Loan Terms and Company Strategy
The credit agreement includes an annual interest rate based on the higher of the federal funds rate upper limit or 3.25%, plus an additional 4.5%. The credit line matures in 364 days, though Riot can request an extension for another year if Coinbase approves.
“Riot has entered into its first Bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing,” said Riot Platforms 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.”
The company has not provided specific details about which strategic initiatives will be funded with the $100 million. When contacted by media outlets, Riot did not immediately respond to requests for clarification.
Riot is not the first mining company to use Coinbase’s credit services. Fellow miner Hut8 previously borrowed $50 million in 2023 and recently increased its facility to $65 million total in January 2025.
Industry Headwinds for Bitcoin Miners
The new financing comes as Bitcoin miners face several major challenges. A recent Bitwise report highlights two key issues affecting miners, particularly 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%, cutting into profit margins and making equipment upgrades more expensive.
At the same time, mining difficulty has surged to record highs. This technical measure indicates how hard it is to mine a Bitcoin block and has resulted in lower earnings for miners. The hashprice, a key indicator of miner revenue, has dropped to around $48, down from over $60 earlier in the year.
Investor interest has also been shifting away from mining companies. The growing popularity of Bitcoin exchange-traded funds (ETFs) and corporate treasury holdings by companies like Strategy and Metaplanet offer simpler exposure to Bitcoin, reducing interest in mining stocks.
Riot’s stock closed up 5.34% at $7.50 on the day of the announcement. However, shares remain down more than 36% over the past year of trading, reflecting the broader struggles in the mining sector.
Coinbase, which provided the credit facility through its lending arm Coinbase Credit, saw its shares rise 2.53% to $194.80 on the same day. Like Riot, Coinbase stock has underperformed over the past 12 months, down 17.6% year-over-year.
A Coinbase Institutional spokesperson commented on the growing demand for their financing services: “Coinbase’s financing capabilities have been an important service for our institutional client base since we launched them in 2020. From corporates and miners, hedge funds, active traders and liquidity providers—even our high net worth franchise—we see demand for financing only growing, and it’s a critical component of Coinbase’s institutional offering and strategy.”
The $100 million credit facility represents a strategic move by Riot to leverage its Bitcoin assets without selling them, allowing the company to access capital while maintaining its position as a major Bitcoin holder during challenging times for the mining industry.
