Riot Platforms, Inc. (NASDAQ: RIOT), an industry service provider focused on vertically integrated Bitcoin mining, is pleased to announce that it has successfully upsized its existing $100 million credit facility to a total commitment of up to $200 million with Coinbase Credit, Inc., a subsidiary of Coinbase Global, Inc. (NASDAQ: COIN).
As clarified in the announcement, key terms under the Upsized Credit Facility remain “identical to the Existing Credit Facility, including the applicable interest rate, and Riot intends to use proceeds from the Upsized Credit Facility to pursue key strategic initiatives and for general corporate purposes.”
Jason Les, CEO of Riot said:
“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.”
All amounts borrowed under the Upsized Credit Facility “will bear interest at an annual rate equal to (a) the greater of (i) the federal funds rate – upper limit on the date of the applicable borrowing, and (ii) 3.25%, plus (b) 4.50%.”
The Upsized Credit Facility will “mature 364 days after the effective date, but the company may request that the maturity date be extended by an additional 364 days, subject to consent by Coinbase.”
The amount borrowed under the Upsized Credit Facility “will be secured by a portion of the Company’s total bitcoin holdings.”
As covered, Riot’s vision is to be “the world’s Bitcoin-driven infrastructure platform.”
Their stated mission is to positively “impact the sectors, networks and communities that we touch.”
They believe that the combination of a focus on innovation and strong community partnership allows the company to achieve solid “execution and create successful outcomes.”
Riot is a Bitcoin mining and digital infrastructure company “focused on a vertically integrated strategy.”
The company reportedly has Bitcoin mining operations in “central Texas and Kentucky, and electrical switchgear engineering and fabrication operations in Denver, Colorado and Houston, Texas.”
