Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed one to enhance cost predictability. This development occurs as the company continues to divest its bitcoin holdings and shift focus towards artificial intelligence and high-performance computing infrastructure.
As of Tuesday, Riot held 15,680 BTC, marking a decline from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net. The revised agreement retains the original loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held in 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 loan-to-value framework, where collateral top-ups are triggered if the LTV ratio exceeds 70%, and liquidation occurs at 80%. This framework poses a risk to Riot's treasury, as continued bitcoin price weakness could lead to further depletion of its holdings to support 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.