Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, replacing a variable interest rate with a fixed one, as disclosed in an 8-K filing. This change provides greater cost certainty as the company shifts its focus towards artificial intelligence and high-performance computing infrastructure, while also reducing its bitcoin holdings.
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 same loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as collateral. The loan maturity has been extended by 364 days, with the option to extend it further by a 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%. As a result, Riot may continue to deplete its bitcoin reserves if the cryptocurrency's price continues to decline, in order to fund its pivot towards AI and HPC.
Riot's shares have fallen by around 9% on Tuesday, to below $17, with the company scheduled to report its Q1 earnings on April 30.