Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces a variable interest rate with a fixed one, providing the company with more predictable expenses as it transitions into artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin holdings. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the beginning of the year, according to bitcoin treasuries.net.
The amended agreement maintains the same loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security. The loan's maturity 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 loan-to-value framework, which may require Riot to replenish collateral if bitcoin's price experiences a sharp decline. Under this framework, a collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%.
Consequently, Riot may continue to deplete its bitcoin reserve if the cryptocurrency's price remains weak, using the funds to support its pivot into AI and HPC. Riot's shares have fallen by approximately 9% on Tuesday, to below $17, with the company scheduled to report its Q1 earnings on April 30.