Bitcoin mining giant Riot Platforms has doubled its credit facility with Coinbase to $200 million, using its massive Bitcoin treasury as collateral. This expansion follows an initial $100 million agreement announced in April 2025, demonstrating growing confidence in cryptocurrency-backed financing solutions.
The revised facility carries a 9% annual interest rate and will mature in May 2026, with an option for a one-year extension. Riot’s 19,223 Bitcoin holdings, valued at approximately $1.8 billion, secure the loan through Coinbase’s credit division.
This financing strategy aligns with Riot’s aggressive expansion plans, which include acquiring additional mining equipment and expanding operations at its Texas facilities. The company previously raised $500 million through bond offerings in late 2024 to fund Bitcoin acquisitions.
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Riot’s Bitcoin-First Financial Strategy
As the third-largest corporate Bitcoin holder globally, Riot has strategically leveraged its crypto assets for growth financing. Key financial details include:
- 19,223 BTC collateral (worth $1.8 billion)
- 200 million credit facility at 9% APR
- 24-month maximum term with extension option
The company’s $500 million December 2024 Bitcoin purchase positioned it to capitalize on both mining rewards and BTC appreciation. Riot CEO Jason Les emphasized this dual strategy creates “value through both operational scale and asset accumulation.”
Coinbase’s Expanding Crypto Credit Market
Coinbase Institutional has emerged as a major player in cryptocurrency-backed lending, with this deal following its $300 million facility for Bitfarms in March 2025. The exchange’s credit arm now manages over $1 billion in crypto-collateralized loans to public companies.
This financing model offers advantages over traditional debt instruments, particularly for companies holding substantial crypto assets. Bitcoin-backed loans typically feature faster approval processes and avoid share dilution compared to equity financing.
Bitcoin’s Role in Corporate Finance
The Riot deal highlights Bitcoin’s growing acceptance as loan collateral among institutional players. Major corporations now hold over 300,000 BTC collectively, with companies like MicroStrategy and Tesla actively using crypto holdings in treasury management strategies.
Market analysts note increased lender comfort with Bitcoin collateral, though loans typically require 150-200% overcollateralization. The Cointelegraph reports similar facilities now account for 12% of institutional crypto lending activity.
While Bitcoin’s volatility remains a consideration, the 24-month loan term suggests lenders anticipate mid-term price stability. Riot’s facility includes margin call provisions tied to BTC’s 30-day average price rather than spot fluctuations.
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The market has responded positively to crypto-backed financing deals, with Bitcoin maintaining support above $60,000 despite recent volatility. Analysts suggest such institutional adoption could drive $1 trillion in crypto-collateralized lending by 2026, fundamentally changing corporate treasury management practices.
