Riot Platforms, Inc. (RIOT) has entered into a significant financial agreement with Coinbase Credit, a division of Coinbase Global (COIN, Financial). This arrangement involves a term loan facility allowing Riot to borrow up to $100 million over a two-month timeframe. The funds are intended to support strategic initiatives and general business operations.
The terms dictate that any borrowed amounts will carry an annual interest rate determined by the higher of the federal funds rate – upper limit on the borrowing date, or 3.25%, with an additional 4.50% on top. This loan is structured to mature 364 days after the effective date, with the option to extend for another 364 days pending Coinbase's approval.
To secure this credit facility, Riot Platforms will use a portion of its bitcoin holdings as collateral, aligning with their strategic focus within the cryptocurrency domain.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Coinbase Global Inc (COIN, Financial) is $283.29 with a high estimate of $400.00 and a low estimate of $169.00. The average target implies an upside of 49.10% from the current price of $190.00. More detailed estimate data can be found on the Coinbase Global Inc (COIN) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Coinbase Global Inc's (COIN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coinbase Global Inc (COIN, Financial) in one year is $184.72, suggesting a downside of 2.78% from the current price of $190. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coinbase Global Inc (COIN) Summary page.
