TechFlow, May 24 — According to Crowdfund Insider, bitcoin mining company Riot Platforms (Nasdaq: RIOT) announced it has successfully increased its existing $100 million credit facility with Coinbase Credit, Inc., a subsidiary of Coinbase Global, Inc., to $200 million.
The expanded credit facility carries the same terms as the original agreement, including applicable interest rates. Riot plans to use the funds for key strategic initiatives and general corporate purposes. All borrowings will accrue interest at an annual rate equal to the higher of the Federal Funds Effective Rate or 3.25%, plus 4.50%.
The credit facility matures 364 days after the effective date, but the company may request a 364-day extension subject to Coinbase’s approval. Borrowings will be secured by a portion of the company’s bitcoin holdings.
Riot CEO Jason Les said expanding the credit facility with Coinbase demonstrates the company's commitment to diversifying its sources of financing and lowering its cost of capital to generate greater long-term value for shareholders.
