Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces a variable interest rate with a fixed one, enhancing cost predictability as the company transitions into artificial intelligence and high-performance computing infrastructure, while also continuing to decrease its bitcoin holdings. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net.
The amended agreement retains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the loan's maturity has been extended by 364 days, with the option to extend it by an additional year, subject to lender approval.
The loan operates under a tiered loan-to-value framework, where collateral top-ups are triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. This framework may lead to further depletion of Riot's bitcoin treasury if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC. Riot's shares have declined by approximately 9% to below $17 on Tuesday, with the company scheduled to report its Q1 earnings on April 30.