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, enhancing cost predictability as the company transitions into artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin holdings.
As of Tuesday, the company's bitcoin reserves stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net. The updated agreement maintains the same loan and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody.
However, the maturity has been extended by 364 days, with the option for a further one-year extension subject to lender approval. The loan operates under a tiered loan-to-value framework, where a top-up is triggered if the LTV ratio exceeds 70% and liquidation occurs at 80%. Consequently, Riot may continue to deplete its bitcoin reserves if the cryptocurrency's price remains weak, potentially funding its pivot into AI and HPC. Riot's shares have declined by approximately 9% to below $17, with the company set to report its Q1 earnings on April 30.