Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. This revision replaces the floating interest rate with a fixed rate, providing greater predictability in costs, as the company continues to decrease its bitcoin holdings and shift focus towards artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot held 15,680 BTC, marking a decline from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net.
The updated agreement retains the same loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the maturity date has been extended by 364 days, with the option to extend it by an additional year, subject to lender approval.
The loan operates under a tiered loan-to-value framework, where a collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. Consequently, if bitcoin's price continues to decline, Riot may be forced to further deplete its treasury to meet these requirements, potentially funding its pivot into AI and HPC. On Tuesday, Riot's shares plummeted by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.