Riot Platforms, one of the largest Bitcoin mining companies, has signed a $100 million loan agreement with Coinbase, collateralized by BTC.
Bitcoin mining company Riot Platforms has secured a $100 million loan from Coinbase's lending arm using BTC as collateral, Coindesk reported.
Riot Platforms said in a statement that the funding will be used for strategic initiatives and general corporate purposes.
“This credit facility is an important part of our efforts to diversify financing sources to support our operations and strategic growth initiatives with the goal of creating long-term shareholder value,” Riot CEO Jason Les said in a statement.
The one-year loan, with a minimum interest rate of 7.75%, will provide the firm with short-term financing for expansion without the need to issue new stock.
The loan period is set at 364 days, but Riot can request a one-year extension if Coinbase agrees.
Riot Platforms currently holds 19,223 BTC worth approximately $1.8 billion.
Riot Platform isn’t the only company to receive a loan from Coinbase. Semler Scientific and another Bitcoin miner, Hut 8, have also previously received Bitcoin-backed loans from Coinbase.
*This is not investment advice.
