Riot Platforms has modified 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 continues to divest its bitcoin holdings and shift its focus towards artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot's bitcoin holdings stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net. The revised agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody.
The loan's maturity has been extended by 364 days, with the option to extend it by another year, subject to lender approval. The credit facility 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 reserves if the cryptocurrency's price continues to decline, potentially funding the company's 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.