Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The new terms replace the floating interest rate with a fixed rate, enhancing cost predictability as the company shifts focus towards artificial intelligence and high-performance computing infrastructure, while continuing to decrease its bitcoin holdings. As of Tuesday, the company's bitcoin reserves stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net.
The revised agreement maintains the loan size and collateral structure, with the company's bitcoin, USDC, and cash held with Coinbase Custody serving as security. The loan maturity has been extended by 364 days, with the option to extend it by another year, subject to lender approval. The loan operates under a tiered loan-to-value framework, where collateral top-ups are triggered if the LTV ratio exceeds 70%, and liquidation occurs at 80%.
This framework may lead to further depletion of Riot's treasury if bitcoin prices continue to decline, potentially funding its pivot into AI and HPC. Riot's shares have declined by around 9% on Tuesday, to below $17, with the company scheduled to report its Q1 earnings on April 30.