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 diversifies into artificial intelligence and high-performance computing infrastructure while continuing to decrease its bitcoin holdings. As of Tuesday, Riot held 15,680 BTC, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. The amended agreement maintains the loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security.
The credit facility'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, which may necessitate collateral top-ups if bitcoin's price experiences a sharp decline. Under this framework, 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 bitcoin reserves if the cryptocurrency's price weakens, potentially funding its pivot into AI and HPC.
Riot's shares have declined by approximately 9% on Tuesday, falling below $17, with the company scheduled to report its Q1 earnings on April 30.