Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The amendment replaces the variable interest rate with a fixed one, enhancing cost predictability. Concurrently, the company is reducing its bitcoin holdings, shifting focus towards artificial intelligence and high-performance computing infrastructure.
As of Tuesday, Riot held 15,680 BTC, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. The revised agreement maintains the loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security.
The loan maturity has been extended by 364 days, with an option for a further one-year extension, 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 framework may lead to further depletion of Riot's bitcoin reserve if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC. Riot's shares have dropped approximately 9% to below $17, with Q1 earnings scheduled for release on April 30.