PANews reported on April 23 that according to CoinDesk, Bitcoin mining company Riot Platforms (NASDAQ: RIOT) reached a $100 million credit agreement with Coinbase's credit department to obtain short-term operating funds using its Bitcoin holdings as collateral. According to the announcement, Riot will draw on the credit line in two months, and it currently holds 19,223 BTC (worth more than $1.8 billion).
The 364-day loan is priced at a floating rate: the higher of the federal funds rate cap plus 4.5% or a minimum annual rate of 7.75%. Riot can choose to extend the loan for one year with Coinbase's consent. The company's CEO said the move is aimed at expanding financing channels to support strategic expansion while avoiding equity dilution. Public records show that this is the third recent Bitcoin mortgage loan business by Coinbase's credit department.
