Riot Platforms has updated its credit agreement with Coinbase Credit, as disclosed in a recent 8-K filing. This revision replaces the variable interest rate with a fixed one, thereby enhancing cost predictability. Concurrently, the company is downsizing its bitcoin holdings as part of its strategic shift towards artificial intelligence and high-performance computing infrastructure. As of the latest available data, Riot held 15,680 BTC, marking a decrease from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net.
The revised agreement retains the original loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash reserves held in Coinbase Custody. However, the loan maturity has been extended by 364 days, with the option for a further one-year extension subject to lender approval. The loan operates under a tiered loan-to-value framework, where collateral top-ups are triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at an 80% threshold. This framework could potentially lead to further depletion of Riot's bitcoin treasury if the cryptocurrency's price continues to decline, thereby funding its pivot into AI and HPC.
Riot's shares have declined by approximately 9% to below $17, with the company's Q1 earnings report scheduled for release on April 30.