Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. This amendment replaces the variable interest rate with a fixed one, providing greater predictability in costs as the company expands into artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin holdings. As of Tuesday, the company's bitcoin reserves had decreased to 15,680 BTC, down from 19,368 BTC at the beginning 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. However, the loan's 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 tiered loan-to-value framework, where a 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 be forced to further deplete its bitcoin reserves to meet these loan terms, potentially funding its pivot into AI and HPC.
Following this announcement, Riot's shares have declined by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.