Riot Platforms Announces $100 Million Credit Facility with Coinbase

Rhea-AI Summary

Riot Platforms (NASDAQ: RIOT) has secured a $100 million credit facility from Coinbase Credit, Inc., a subsidiary of Coinbase Global, Inc. The multiple drawdown term loan facility will be available over a two-month period following the effective date.

The credit facility represents Riot's first bitcoin-backed funding arrangement, providing non-dilutive financing for strategic initiatives and general corporate purposes. The loan terms include an interest rate calculated as the greater of the federal funds rate or 3.25%, plus 4.50% annually.

The facility will mature in 364 days with a possible extension for an additional 364 days, subject to Coinbase's approval. The loan will be secured by a portion of Riot's bitcoin holdings.

Positive

• Secured $100M in non-dilutive financing
• First bitcoin-backed credit facility providing funding flexibility
• Diversification of financing sources

Negative

• Relatively high interest rate (minimum 7.75% annually)
• Short-term nature of the facility (364 days)
• Portion of bitcoin holdings locked as collateral

News Market Reaction

+5.34%

1 alert

+5.34% News Effect

On the day this news was published, RIOT gained 5.34%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CASTLE ROCK, Colo., April 23, 2025 /PRNewswire/ -- Riot Platforms, Inc. (NASDAQ: RIOT) ("Riot" or "the Company"), an industry leader in vertically integrated Bitcoin mining, is pleased to announce that it has entered into a $100 million credit facility (the "Credit Facility") with Coinbase Credit, Inc. ("Coinbase"), a subsidiary of Coinbase Global, Inc. (NASDAQ: COIN).

Under the terms of the Credit Facility, Coinbase will provide a multiple drawdown term loan facility in an aggregate principal amount up to $100 million which will be made available to Riot over a two-month period following execution of the Credit Facility ("the Effective Date"). Riot intends to use proceeds from the Credit Facility to pursue key strategic initiatives and for general corporate purposes.

"Riot has entered into its first bitcoin-backed facility, which provides us with non-dilutive funding at an attractive cost of financing," said Jason Les, CEO of Riot. "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."

All amounts borrowed under the Credit Facility will bear interest at an annual rate equal to (a) the greater of (i) the federal funds rate – upper limit¹ on the date of the applicable borrowing, and (ii) 3.25%, plus (b) 4.50%. The Credit Facility will mature 364 days after the Effective Date, but the Company may request that the maturity date be extended by an additional 364 days, subject to consent by Coinbase. The amount borrowed under the Credit Facility will be secured by a portion of the Company's total bitcoin holdings.

About Riot Platforms, Inc.

Riot's (NASDAQ: RIOT) vision is to be the world's leading Bitcoin-driven infrastructure platform.

Our mission is to positively impact the sectors, networks and communities that we touch. We believe that the combination of an innovative spirit and strong community partnership allows the Company to achieve best-in-class execution and create successful outcomes.

Riot is a Bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. The Company has Bitcoin mining operations in central Texas and Kentucky, and electrical switchgear engineering and fabrication operations in Denver, Colorado and Houston, Texas.

For more information, visit www.riotplatforms.com.

Cautionary Statement Concerning Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions. Such statements rely on the safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "anticipates," "believes," "plans," "expects," "intends," "will," "potential," "hope," and similar expressions are intended to identify forward-looking statements. These forward-looking statements may include, but are not limited to, statements about uncertainties related to market conditions and the utilization of the Credit Facility on the anticipated terms or at all. Detailed information regarding the factors identified by the Company's management which they believe may cause actual results to differ materially from those expressed or implied by such forward-looking statements in this press release may be found in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the risks, uncertainties and other factors discussed under the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as amended, and the other filings the Company makes with the SEC, copies of which may be obtained from the SEC's website, www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and the Company disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Company hereafter becomes aware, except as required by law. Persons reading this press release are cautioned not to place undue reliance on such forward-looking statements.

Investor Contact

Phil McPherson
303-794-2000 ext. 110
IR@Riot.Inc

Media Contact

Alexis Brock
PR@Riot.Inc 

¹ Represents the upper limit of the federal funds target range established by the Federal Open Market Committee. The federal funds rate – upper limit is 4.50% as of April 22, 2025.

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SOURCE Riot Platforms, Inc.

FAQ

What are the terms of RIOT's $100M credit facility with Coinbase?

The facility has a 364-day maturity, with interest rate at the greater of federal funds rate or 3.25%, plus 4.50%. It's secured by bitcoin holdings and can be extended for another 364 days with Coinbase's approval.

How will RIOT use the $100M credit facility from Coinbase?

Riot plans to use the proceeds for key strategic initiatives and general corporate purposes.

Is RIOT's $100M Coinbase credit facility dilutive to shareholders?

No, it's explicitly stated as non-dilutive funding, meaning it won't dilute existing shareholders' ownership.

When will RIOT's $100M Coinbase credit facility be available?

The facility will be available over a two-month period following the effective date of the agreement.