Coinbase has issued a $100 million loan to miner Riot with BTC collateral

Riot is one of the largest corporate holders of BTC in the world

24.04.2025 - 10:50

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What’s new? Leading US bitcoin miner Riot, with a capitalization of $2,62 billion, has entered into a $100 million loan agreement with centralized crypto exchange (CEX) Coinbase. The loan will be accessed through phased withdrawals over two months. Riot will use the funds for business expansion and other corporate purposes.

Press release

What else is known? The loan is uniquely structured as Riot is using its bitcoin holdings, currently totaling 19 233 BTC worth $1,8 billion, as collateral. These assets make the firm one of the largest corporate bitcoin holders in the world.

Riot Platforms CEO Jason Les said this is the first loan deal of its kind for the firm:

“This credit facility is a key part of our efforts to diversify sources of financing to support our operations and strategic growth initiatives, with a view towards long-term stockholder value creation.”

Arizona Senate passes bill to protect mining rights

It must also be signed by Governor Katie Hobbs to take effect

The mining industry as a whole is struggling right now. In a recent report, investment firm Bitwise highlighted the main challenges particularly relevant to players in the US. For example, the raising of US duties on imports from Vietnam, Thailand, and Malaysia to 24-46% has significantly increased the cost of equipment.

At the same time, the difficulty of mining rose to record highs. As a result, a key revenue metric for miners, known as hashprice, fell to $48 from more than $60 at the start of the year.

In March, the capitalization of the largest miners fell by a cumulative $6 billion

For industry companies, the month was the worst in history in terms of stock returns

In addition, the growing popularity of cryptocurrency-based exchange-traded funds (ETFs) and publicly traded companies Strategy and Metaplanet, which actively invest in bitcoin, led to a decline in interest in miner stocks. Tether will soon launch its own company to invest in BTC, with an initial capital of $3,6 billion.

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