Riot Platforms has revised its $200 million credit facility agreement with Coinbase Credit, as disclosed in an 8-K filing. The revised terms replace the variable interest rate with a fixed rate, providing greater predictability in borrowing costs. Meanwhile, the company continues to decrease its bitcoin holdings, now totaling 15,680 BTC as of Tuesday, down from 19,368 BTC at the beginning of the year, according to data from bitcoin treasuries.net. The amendment to the credit facility introduces a fixed interest rate, offering Riot greater cost certainty as it expands into artificial intelligence and high-performance computing infrastructure.
Concurrently, the company is reducing its bitcoin reserves. The updated agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held in Coinbase Custody.
The loan maturity has been extended by 364 days, with the option to further extend it by a year, subject to lender approval. The credit facility operates under a loan-to-value framework, which may require Riot to increase its collateral if bitcoin's price drops significantly. The loan is subject to 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 continues to decline, Riot may need to further deplete its bitcoin reserves to support its pivot into AI and HPC, and to service the loan.
Riot's shares have fallen approximately 9% on Tuesday, to below $17. The company is scheduled to release its Q1 earnings on April 30.