title: Bitcoin Mining Company Riot Platforms Expands Credit Agreement With Coinbase

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.

Riot Platforms, Inc. (NASDAQ:RIOT) has expanded its credit agreement with Coinbase Credit, Inc., a financing subsidiary of Coinbase Global, Inc. (NASDAQ:COIN).

What Happened: The revised deal expands an existing credit line to a total of $200 million, providing greater liquidity to Riot while keeping all material terms the same.

This expanded facility will support Riot's strategic plans and general operations. As part of its broader effort to deliver long-term value to investors, Riot aims to optimize capital usage and improve its financing structure.

"Riot is pleased to upsize the credit facility with Coinbase, which is a testament to 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," said Jason Les, CEO of Riot.

The expanded credit line provides for up to $200 million in total borrowings by Riot, at its discretion, at any time. Borrowed funds will accrue interest based on the greater of the federal funds upper limit or 3.25%, plus an additional 4.50%.

The credit line matures 364 days from activation, with the option for an extension of another 364 days, subject to approval by Coinbase.

The borrowed funds are partially secured by Riot's Bitcoin (CRYPTO:BTC) holdings, aligning with the company's strategy of leveraging its 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 the Global X Blockchain ETF (NYSE:BKCH).

Story continues: Despite a strong start to the year, Bitcoin has encountered difficulties in recent months, remaining range-bound within the $60,000 level.

This lack of volatility has limited the potential gains for mining companies, such as Riot Platforms, which are directly affected by fluctuations in the cryptocurrency's price.

Despite the lackluster performance of BTC, major cryptocurrencies like Ethereum (CRYPTO:ETH) and smaller altcoins have shown promise, with several tokens experiencing significant rallies during the year.

While these rallies could benefit cryptocurrency investors with direct exposure, they have not yet translated into substantial stock price appreciation for companies like Riot Platforms.

Despite the challenges, efficient capital usage and a diversified financing structure are crucial for any company's long-term success, especially in the dynamic and fast-growing cryptocurrency industry.

As both Riot and Coinbase continue their operations and navigate the evolving market conditions, investors will be keeping an eye on any further developments in their collaboration.