Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one, as disclosed in an 8-K filing. This change provides greater cost certainty as the company transitions into artificial intelligence and high-performance computing infrastructure, while also reducing its bitcoin reserves. As of Tuesday, Riot held 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 held with Coinbase Custody. 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 a collateral top-up is triggered if the LTV ratio exceeds 70%, and liquidation occurs at 80%. As a result, if bitcoin prices continue to decline, Riot may need to further deplete its treasury to meet these requirements, which could impact its plans to pivot into AI and HPC. Riot's shares have fallen by around 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.