Riot Platforms has modified its $200 million credit facility with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to decrease its bitcoin holdings and diversify into artificial intelligence and high-performance computing infrastructure.
As of Tuesday, Riot held 15,680 BTC, a significant decrease from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net. The revised agreement retains the same loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security.
However, the maturity date has been extended by 364 days, with the option to extend it by an additional year, subject to lender approval. The loan operates under a tiered loan-to-value framework, where a top-up is triggered if the LTV ratio exceeds 70% and liquidation occurs at 80%. This could lead to further depletion of Riot's bitcoin reserves if the cryptocurrency's price continues to decline, potentially financing its pivot into AI and HPC. Riot's shares have fallen by approximately 9% on Tuesday, dropping below $17, with the company scheduled to report its Q1 earnings on April 30.