Riot Platforms has modified its $200 million credit facility with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed rate to enhance cost predictability while continuing to decrease its bitcoin holdings. This change provides stability as Riot transitions into artificial intelligence and high-performance computing infrastructure, simultaneously reducing its bitcoin stash. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net.
The revised agreement retains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the maturity date has been extended by 364 days, with the option to extend it by another year subject to lender approval. The loan operates under a loan-to-value framework, which may require additional collateral if bitcoin's price drops significantly, potentially leading to further depletion of Riot's treasury if bitcoin's weakness persists, thereby funding its AI and HPC expansion.
Riot's shares have declined by around 9% on Tuesday to below $17, with the company's Q1 earnings report scheduled for April 30.