Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed rate to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings, with its treasury decreasing from 19,368 BTC at the beginning of the year to 15,680 BTC as of Tuesday, according to bitcoin treasuries.net. The amendment provides Riot with greater financial stability as it expands into artificial intelligence and high-performance computing infrastructure. The loan's terms remain unchanged, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody.
However, the maturity date 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 collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. As a result, if bitcoin prices continue to decline, Riot may need to further reduce its treasury to meet the loan's requirements, potentially funding its pivot into AI and HPC. The company's shares have declined by approximately 9% to below $17, with its Q1 earnings report scheduled for April 30.