Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, switching from a variable to a fixed interest rate to enhance cost predictability as the company transitions into artificial intelligence and high-performance computing infrastructure, while also reducing its bitcoin holdings. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the beginning of the year, according to bitcoin treasuries.net. The revised agreement retains the original loan amount and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held in Coinbase Custody. However, the maturity date 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 top-up is triggered if the loan-to-value ratio exceeds 70% and liquidation occurs at 80%, which could lead to further depletion of Riot's bitcoin reserves if the cryptocurrency's price continues to decline, thereby funding its pivot into AI and HPC. On Tuesday, Riot's shares fell by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.