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 to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings, with a current reserve of 15,680 BTC, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net.
The revised agreement introduces a fixed interest rate, providing greater financial stability as Riot expands into artificial intelligence and high-performance computing infrastructure. The loan's terms remain largely unchanged, with the company's bitcoin, USDC, and cash held with Coinbase Custody serving as collateral. However, the maturity date has been extended by 364 days, with the option for a further one-year extension subject to lender approval.
The credit facility operates under a loan-to-value framework, where a sharp decline in bitcoin's price could trigger collateral top-ups, with a loan-to-value ratio exceeding 70% prompting additional collateral and 80% leading to liquidation. As a result, Riot may continue to deplete its bitcoin reserve to support its pivot into AI and HPC if the cryptocurrency's price remains weak. The company's shares have declined by approximately 9% to below $17, with its Q1 earnings report scheduled for April 30.