Bitcoin (BTC) Miner Riot Platforms (Riot) has reached a credit agreement of $ 100 million with the Coinbase credit arm, using bitcoin as a guarantee to ensure short -term funds for continuous expansion.
The mining firm that is quoted on the stock market said in a press release that it would attract installation in the next two months. The Agreement offers Riot, which currently owns 19,223 BTC worth more than $ 1.8 billion, a credit line that avoids the issuance of new shares.
“This line of credit is a key part of our efforts to diversify financing sources to support our strategic growth operations and initiatives, with a view to creating the value of long -term shareholders,” said CEO Jason in a statement.
The loan, issued by Coinbase Credit, comes with a variable interest rate: borrowers will pay at least 7.75% per year, calculated as the highest of 3.25% or the federal funds rate at the upper limit, plus 4.5%. The loan period is 364 days, although Riot can seek a year extension if Coinbase accepts it.
The credit line is secured by a part of the total Bitcoin de Riot reserves. The firm said it will use the funds “to seek key strategic initiatives and for general corporate purposes.”
Coinbase has been making other similar offers. Last week, the Semler Scientific Health Technology firm (SMLR) announced that it reached an agreement with Coinbase to request cash through a loan guaranteed by its Bitcoin holdings.
Hut 8 (HUT), another Bitcoin miner, has also taken advantage of a credit line backed by Bitcoin with Coinbase in the past.
