Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings and expand into artificial intelligence and high-performance computing infrastructure. The adoption of a fixed interest rate provides Riot with greater financial stability as it transitions into AI and HPC. Concurrently, the company is reducing its bitcoin stash, with holdings decreasing to 15,680 BTC as of Tuesday, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net.
The revised agreement maintains the loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security for the credit facility. The loan maturity has been extended by 364 days, with an option for a further one-year extension subject to lender approval.
The loan operates under a loan-to-value framework, where a sharp decline in bitcoin's price could trigger collateral top-ups. The framework includes a tiered system, where a top-up is required if the LTV ratio exceeds 70% and liquidation occurs at 80%.
As a result, Riot may continue to deplete its bitcoin reserve to support its AI and HPC expansion if bitcoin prices remain weak. Riot's shares have declined by approximately 9% on Tuesday, falling below $17. The company is scheduled to report its Q1 earnings on April 30.