Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings and transition 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 beginning of the year, according to bitcoin treasuries.net. The revised agreement maintains the loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the loan 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%.
This framework may lead to further depletion of Riot's bitcoin treasury if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC. Riot's shares have declined by around 9% on Tuesday to below $17, with the company scheduled to report its Q1 earnings on April 30.