Riot Platforms, Inc. RIOT, a Bitcoin mining company, announced an expanded credit agreement with Coinbase Credit, Inc., a financing subsidiary of Coinbase Global, Inc. COIN.
Under the revised deal, Riot has increased its existing $100 million credit line to a total of $200 million, doubling its liquidity through the facility while maintaining all previous terms.
The new facility will support Riot's strategic plans and general operations. The company aims to optimize capital usage and improve its financing structure as part of its broader effort to deliver long-term value to investors.
Also Read: Eric Trump Said Bitcoin Is The 'Greatest Hedge Against Hard Assets,' Even Though Real-Estate Is His 'Bread And Butter'
Jason Les, CEO of Riot, highlighted the significance of the expansion, stating, "Riot is pleased to upsize the credit facility with Coinbase, which is a demonstration of our efforts to diversify our financing sources and lower our cost of capital in order to support greater long-term value creation for our shareholders."
The terms of the new agreement remain unchanged from the original facility. Borrowed funds will accrue interest based on a rate composed of the greater of the federal funds upper limit or 3.25%, plus an additional 4.50%.
Get StartedTrade Bitcoin, Ethereum, and More Instantly -- No Wallets, No Hassle
Speculate on price movements, claim up to $200 in bonuses, and start with risk-free paper trading with crypto futures on Plus500.
Get StartedDisclosure: 82% of retail CFD accounts lose money
The credit line matures 364 days from activation, with a potential extension of another 364 days, subject to Coinbase's approval.
Riot's Bitcoin BTC/USD holdings will partially secure the borrowed funds, aligning with its strategy of leveraging digital assets to unlock capital while retaining exposure to potential cryptocurrency upside.
According to Benzinga Pro, RIOT stock has decreased over 19% in the past year. Investors can gain exposure to the stock via Global X Blockchain ETF BKCH.
Price Action: RIOT shares are trading lower by 1.45% to $8.845 at last check Tuesday, while COIN shares are trading lower by 0.52% to $262.63.
Read Next:
Riot Platforms Powers Up: Analyst Gives 4 Reasons Why He Is Bullish
Image via Shutterstock
COINCoinbase Global Inc$264.240.09%Stock Score Locked: Want to See it?
Benzinga Rankings give you vital metrics on any stock - anytime.
Reveal Full ScoreEdge RankingsMomentum71.71Growth79.68Quality-Value31.31Price TrendShortMediumLongOverviewRIOTRiot Platforms Inc$8.96-0.17%BKCHGlobal X Blockchain ETF$45.78-1.03%
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs