- Riot Platforms (RIOT, Financial) secures a $100 million non-dilutive credit facility from Coinbase Credit.
- The facility is Riot's first bitcoin-backed funding arrangement.
- Loan terms include an interest rate of the higher of the federal funds rate or 3.25%, plus 4.50% annually.
Riot Platforms, Inc. (NASDAQ: RIOT) has announced a new $100 million credit facility with Coinbase Credit, Inc., a subsidiary of Coinbase Global, Inc. The facility marks Riot's first venture into bitcoin-backed financing, aimed at supporting strategic initiatives and general corporate purposes without resorting to dilutive measures.
The loan will be made available over a two-month period following the effective date, with a term of 364 days, extendable for an additional year, contingent on Coinbase's approval. The borrowed amount will be secured by a portion of Riot's bitcoin holdings. Riot CEO Jason Les emphasized this facility as a strategic move to diversify financing sources, ultimately aiming at enhancing shareholder value.
The interest rate for the credit facility will be calculated as the greater of the federal funds rate or 3.25%, plus an additional 4.50% per annum. This arrangement provides Riot with a flexible funding option while securing its financial interests and long-term growth prospects.
