Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, switching from a variable interest rate to a fixed rate for enhanced cost predictability. This change occurs as the company continues to decrease its bitcoin holdings and transition into artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot held 15,680 BTC, a decrease from the 19,368 BTC it held 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 stored with Coinbase Custody. The loan's maturity has been extended by 364 days, with the option to extend it by another year subject to lender approval. The loan operates under a loan-to-value framework that may require additional collateral if bitcoin's price experiences a sharp decline.
Under this framework, a collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. As a result, Riot may continue to deplete its treasury if the bitcoin market remains weak, using the funds to support its pivot into AI and HPC.
Riot's shares have fallen by approximately 9% on Tuesday to below $17, with the company scheduled to report its Q1 earnings on April 30.