Riot Platforms has revised its credit facility agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed one to enhance cost predictability. This development occurs as the company continues to divest its bitcoin holdings and transitions into artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot's bitcoin holdings stood at 15,680, marking a decrease from the 19,368 held at the beginning of the year, according to data from bitcoin treasuries.net.
The revised agreement maintains the loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash reserves held with Coinbase Custody. However, the loan's maturity has been extended by 364 days, with the option for a further one-year extension subject to lender approval.
The loan operates under a loan-to-value framework, which may necessitate collateral top-ups if bitcoin's price experiences a sharp decline. Under this framework, a top-up is triggered when the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. Consequently, Riot may continue to deplete its bitcoin reserve to fund its pivot into AI and HPC if bitcoin's price remains weak. The company's shares have declined by approximately 9% to below $17, with the first-quarter earnings report scheduled for April 30.