Riot Platforms, a leading Bitcoin mining company, has announced that it secured a $100 million credit facility from Coinbase using part of its Bitcoin reserves as collateral.
Loan Agreement
The loan agreement was announced on April 23. CEO Jason Les stated that this deal represents Riot's "first Bitcoin-backed facility." The credit line will support general corporate operations and the company's growth plans. The loan has a one-year maturity period with an option to extend for an additional year. Interest payments on the loan will be at least 9% annually.
Bitcoin Reserve Data
Riot Platforms possesses the third-largest corporate Bitcoin treasury, with their current holdings worth about $1.8 billion. The company significantly increased its Bitcoin reserves in December when it acquired $500 million worth of the cryptocurrency.
Trends in the Bitcoin Market
As institutional Bitcoin investment continues to grow globally, Japanese firm Metaplanet has become Asia's largest corporate Bitcoin holder after purchasing 330 BTC for $28.2 million. Following the loan announcement, Riot's stock (NASDAQ: RIOT) rose more than 8%.
Riot Platforms continues to build its strategy around Bitcoin amidst price fluctuations and challenging market conditions. The financial results for 2023 reflect strong growth, bolstering the company's future prospects.
