Riot Platforms, a leading cryptocurrency mining company, has secured a groundbreaking $100 million loan from Coinbase, leveraging its vast Bitcoin reserves as collateral. The announcement was made by Riot CEO Jason Les on April 23, marking the first-ever Bitcoin-backed loan obtained by the company.

This new credit line is intended to finance Riot's general business operations and accelerate strategic growth projects. Set to mature in one year, the loan can be extended an additional year if necessary. The interest rate is pegged at a minimum of 9% annually, based on the current upper bound of the federal funds rate plus 4.5%. A portion of Riot's substantial Bitcoin holdings, totaling 19,223 BTC—worth around $1.8 billion at current prices—will serve as security for the loan.

Riot Platforms, listed on Nasdaq under the ticker RIOT, experienced an immediate stock jump of over 8% following the loan announcement. This boost coincided with a general market rally benefiting Bitcoin miners. Despite recent gains, Riot's stock remains under pressure, dropping roughly 40% since early this year due to ongoing global trade tensions and falling cryptocurrency prices. Bitcoin itself is down approximately 15% from its recent peak, trading near $93,000.

In December, Riot expanded its Bitcoin reserves significantly by purchasing $500 million worth of BTC. This move followed the announcement of a $500 million private bond offering aimed at financing further Bitcoin acquisitions. The company's financial health remains strong, posting a record $376.7 million in revenue and $109.4 million in profit for 2024.

Riot Platforms will release its latest earnings report covering the first quarter of this year on May 1, 2025, which investors eagerly await for insights into its continued financial performance and expansion strategies.