Riot Platforms has modified 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 rate, enhancing cost predictability, while the company continues to decrease its bitcoin holdings.
This shift to a fixed rate provides stability as Riot transitions into artificial intelligence and high-performance computing infrastructure, simultaneously reducing its bitcoin reserves. As of Tuesday, the company held 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net. The updated agreement retains the same 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 the option to further extend it by a year, subject to lender approval.
The loan operates under a loan-to-value framework, which may require collateral top-ups if bitcoin's price drops significantly. Under normal conditions, a top-up is triggered when the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%.
Consequently, Riot may continue to deplete its treasury if bitcoin prices remain weak, funding its AI and HPC expansion. Riot's shares have declined by around 9% on Tuesday, falling below $17, with the company scheduled to report its Q1 earnings on April 30.