Riot Platforms has revised its credit agreement with Coinbase Credit, as disclosed in an 8-K filing, transitioning from a variable to a fixed interest rate to enhance cost predictability. This development occurs as the company continues to divest its bitcoin holdings and expand into artificial intelligence and high-performance computing infrastructure. As of the latest update, Riot's bitcoin holdings stood at 15,680, marking a decline from the 19,368 held at the start of the year, according to data from bitcoin treasuries.net.
The revised terms maintain the loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash reserves held with Coinbase Custody. The loan maturity has been extended by approximately one year, with the option for a further one-year extension, subject to lender approval. Operating under a loan-to-value framework, the loan terms dictate that if the bitcoin price drops significantly, Riot may be required to provide additional collateral, potentially leading to further depletion of its bitcoin treasury to support its strategic pivot into AI and HPC.
This comes at a time when Riot's shares have experienced a decline of around 9% to below $17, with the company's Q1 earnings report scheduled for release on April 30.