Riot Platforms has modified its existing $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revised terms replace the variable interest rate with a fixed rate, providing Riot with greater predictability in its borrowing costs. This development comes as the company continues to decrease its bitcoin reserves, now holding 15,680 BTC, down from 19,368 at the start of the year, according to data from bitcoin treasuries.net. The new agreement brings stability to Riot's finances as it expands into artificial intelligence and high-performance computing.
Although the loan amount and collateral structure remain unchanged, with the credit facility secured by Riot's bitcoin, USDC, and cash held in Coinbase Custody, the maturity date has been extended by 364 days, with the possibility of a further one-year extension subject to lender approval. The loan is subject to a loan-to-value framework, which may require additional collateral if bitcoin's price drops significantly.
Under this framework, if the loan-to-value ratio exceeds 70%, Riot may need to provide more collateral, and if it reaches 80%, liquidation may be triggered. As a result, Riot's bitcoin treasury may be further depleted if the cryptocurrency's price continues to decline, potentially funding the company's pivot into AI and HPC.
Riot's shares have fallen by around 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.