Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. This revision replaces the variable interest rate with a fixed one, providing the company with more predictable expenses as it expands into artificial intelligence and high-performance computing infrastructure. Meanwhile, Riot continues to decrease its bitcoin holdings, with its treasury now holding 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net.
The updated terms maintain the same loan amount and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security. 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 credit facility operates under a loan-to-value framework, where a sharp decline in bitcoin's price could trigger collateral top-ups, potentially leading to further depletion of Riot's bitcoin reserve as it funds its pivot into AI and HPC.
Riot's shares have fallen by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.