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 occurs as the company transitions into artificial intelligence and high-performance computing infrastructure while continuing to decrease its bitcoin holdings. As of Tuesday, Riot's bitcoin holdings stood at 15,680, down from 19,368 at the beginning of the year, according to bitcoin treasuries.net. The revised agreement retains the original loan amount and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held in Coinbase Custody.
However, the maturity period has been extended by 364 days, with the option to extend it further by a year, subject to lender approval. The loan operates under a loan-to-value framework, which may trigger additional collateral if bitcoin's price drops significantly. Under normal circumstances, a top-up is required if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. Consequently, Riot may continue to deplete its bitcoin reserves if the cryptocurrency's price remains weak, using the funds to support its pivot into AI and HPC.
Riot's shares have declined by approximately 9% on Tuesday, falling below $17. The company is scheduled to release its Q1 earnings on April 30.