Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The amendment replaces a variable interest rate with a fixed one, providing greater cost certainty as the company transitions into artificial intelligence and high-performance computing infrastructure, while also continuing to decrease its bitcoin holdings.
As of Tuesday, the company's bitcoin reserves had decreased to 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net. The revised agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash holdings 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 collateral top-ups are triggered if the loan-to-value 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 into AI and HPC. Riot's shares have fallen by approximately 9% on Tuesday, to below $17, with the company's Q1 earnings report scheduled for April 30.