Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed one to enhance cost predictability. This change occurs as the company transitions into artificial intelligence and high-performance computing infrastructure while continuing to decrease its bitcoin holdings. As of Tuesday, Riot held 15,680 BTC, a decrease from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net.
The revised agreement maintains the same loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. The loan's maturity has been extended by 364 days, with the option to extend it by another year, subject to lender approval. The loan operates under a loan-to-value framework, which may require Riot to replenish the collateral if bitcoin's price drops significantly.
Under this framework, a collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs 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 remains weak. On Tuesday, Riot's shares declined by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.