Riot Platforms has modified its credit agreement with Coinbase Credit, as disclosed in an 8-K filing, transitioning from a variable to a fixed interest rate, which enhances cost predictability while the company continues to decrease its bitcoin holdings. This change brings stability as Riot expands into artificial intelligence and high-performance computing infrastructure, concurrently reducing its bitcoin stash. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net.
The revised agreement maintains the loan's size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security. The loan's maturity has been extended by 364 days, with the option to extend further, subject to lender approval.
Operating under a loan-to-value framework, the loan may require additional collateral if bitcoin's price drops significantly, with a top-up triggered at a 70% LTV ratio and liquidation at 80%. This could lead to further depletion of Riot's treasury if bitcoin prices continue to decline, potentially funding its pivot into AI and HPC.
Riot's shares have fallen around 9% on Tuesday, to below $17, with the company's Q1 earnings report scheduled for April 30.