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 one, enhancing cost predictability as the company divests its bitcoin holdings and ventures into artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot's bitcoin holdings had decreased to 15,680 BTC, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. The amended agreement maintains the original loan amount and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash stored with Coinbase Custody.
The loan's maturity 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 tiered loan-to-value framework, where a collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%.
Consequently, if bitcoin's price continues to decline, Riot may need to further deplete its treasury to meet these triggers, potentially funding its pivot into AI and HPC. Riot's shares have declined by approximately 9% on Tuesday, to below $17, with the company's Q1 earnings report scheduled for April 30.