Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces the floating interest rate with a fixed one, providing more predictable expenses as the company transitions 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 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 maturity date 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 LTV ratio exceeds 70%, and liquidation occurs at 80%.
This could lead to further depletion of Riot's treasury if bitcoin prices continue to decline, potentially funding its pivot into AI and HPC. Riot's shares have fallen around 9% on Tuesday to below $17, with the company set to report its Q1 earnings on April 30.