Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces a variable interest rate with a fixed one, providing the company with greater cost certainty as it expands into artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin holdings.
As of Tuesday, the company's bitcoin reserve had decreased to 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net. The updated agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the loan's maturity 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 loan-to-value ratio exceeds 70% and liquidation occurs at 80%. This framework may lead to further depletion of Riot's bitcoin reserves if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC. Following the announcement, Riot's shares have declined by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.