Riot Platforms Releases $494M in Bitcoin After Repaying Coinbase Loan

Riot Platforms fully settled a $200 million loan from Coinbase, freeing 5,821 bitcoin that had been held as collateral. At the current price of roughly $84,800 per coin, that stake is valued at about $494 million.

Riot, a Nasdaq-listed bitcoin (BTC) miner, now holds those coins free of any encumbrance. The company is also investing significantly in converting its Texas facilities into AI data centers.

Details of Riot’s Bitcoin-Collateralized Coinbase Loan Payoff

The arrangement resembled a pawn transaction. Riot provided bitcoin, USDC — a stablecoin pegged to the dollar — and cash to Coinbase Custody as collateral.

Riot settled the principal and interest on September 21, as disclosed in an 8-K filing released Friday. An 8-K is a document that US-listed firms are required to submit following significant occurrences. Coinbase’s rights to the collateral ceased that same day, and no prepayment penalty was incurred by Riot.

The freed bitcoin represented slightly more than half of the 11,380 BTC that Riot possessed as of June 30. The filing, however, does not indicate how Riot obtained the repayment funds or its intentions for the released coins.

Reasons for Fluctuations in Riot’s Pledged Bitcoin

Prior to the repayment, merely 5,559 of Riot's bitcoin were unencumbered, according to its second-quarter report. If the miner's total holdings have remained static since then, the loan settlement approximately doubles that available supply.

The quantity of collateralized coins fluctuated in tandem with bitcoin's price. A decline in price reduces the debt coverage per coin, requiring Riot to pledge additional BTC.

That scenario played out in February. A price drop compelled Riot to contribute 1,825 additional coins, increasing its collateral from 3,977 at year-end 2025 to 5,802, per its annual report.

The mechanism also functioned in reverse. In periods of price appreciation, the loan contract allowed Riot to request the return of some coins without making a payment. However, Coinbase retained ultimate authority over the calculations.

Instead, Riot paid back the entire $200 million, seven months ahead of the loan's maturity in April 2027. The debt bore a fixed interest rate of 6.15%.

Riot's Bitcoin Sales Exceed Its Mining Output

Riot's recent activity indicates substantial bitcoin sales. During Q1, the miner sold 3,778 BTC for $289.5 million while mining only 1,473, according to its production update.

The reduction persisted. Riot's bitcoin reserves dropped from 15,680 to 11,380 in Q2, despite mining 1,587 BTC during the period. In August, BeInCrypto reported that the company was partially financing its AI expansion through those disposals.

That expansion is significant. In August, Riot entered into a 20-year lease worth $9.1 billion for 191 megawatts of computing power at its Rockdale, Texas, facility. The lessee is identified solely as a premier frontier AI lab.

Riot also has additional financing arranged. Morgan Stanley extended a $573 million bridge loan for initial construction, and a long-term credit facility is nearing completion, according to Riot's Q2 results.

Meanwhile, bitcoin's price has risen since June 30, the date when the collateralized coins were valued at $340.7 million.

In trading, RIOT shares ended Friday at $23, a 2% decline. The stock fell roughly 3% over the week but is still up approximately 82% year-to-date.

Riot's upcoming third-quarter financial statement will reveal if the released bitcoin remains on its balance sheet.