Bitcoin Miner Riot Platforms has signed a $100 million credit agreement with Coinbase, using BTC Holdings as collateral.
The facility will be accessed through gradual withdrawals over two months, until the full $100 million is withdrawn, according to the company. Riot confirmed that capital supports expansion efforts and other corporate priorities.
The loan terms include an annual interest rate based on a higher federal funding rate cap or 3.25%, plus an additional 4.5%. The credit line matures in 364 days, but Riot can request an additional year of extension until it holds Coinbase approval.
The facility is unique in its structure. Because Riot is taking advantage of the Bitcoin Treasury Department, currently totaling 19,233 BTC, worth nearly $1.8 billion. The holding makes the company one of the world’s largest corporate Bitcoin holders.
“We’re looking forward to seeing you in the future,” said Jason Les, CEO of Riot Platforms.
“The riots entered the first bItcoin– Facilities that provide non-diluted funding at attractive financing costs. This credit facility is an important part of our efforts to diversify our funding sources to support our operations and strategic growth initiatives with the aim of creating long-term shareholder value. ”
Bitcoin Miners are facing headwinds
Riot is exploring new funding options, but the broader mining industry faces serious challenges. A recent Bitwise report outlines two major issues facing miners, particularly the US issues.
The report says that US tariffs on mining equipment imported from Vietnam, Thailand and Malaysia have significantly increased hardware costs. These import duties range from 24% to 46%, which costly to upgrade and reduce profit margins.
At the same time, mining difficulty, a measure of how difficult it is to minify blocks, is surged to record high values. As a result, Hashpris, a key indicator of miners’ revenue, fell from over $60 to $48 at the beginning of the year.
In addition to the challenges, investors’ focus is gradually moving elsewhere. With the growing popularity of Bitcoin Exchange-Traded Funds (ETFS) and Corporate Treasury holdings such as Strategy and Metaplanet, interest in BTC mining stocks is waning, even when exposed to top-level crypto.
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