Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revised terms replace a variable interest rate with a fixed one, enhancing cost predictability as the company transitions into artificial intelligence and high-performance computing infrastructure, while also decreasing its bitcoin reserves.
As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net. The amended agreement retains the same loan size and collateral structure, with the company'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 credit facility operates under a loan-to-value framework, where a sharp decline in bitcoin's price could trigger collateral top-ups, with a tiered structure requiring top-ups if the LTV ratio exceeds 70% and liquidation at 80%.
As a result, Riot may continue to deplete its bitcoin treasury to fund its pivot into AI and HPC if bitcoin's price weakness persists. The company's shares have fallen by around 9% to below $17 on Tuesday, with Q1 earnings scheduled for release on April 30.