Riot Platforms has modified its $200 million credit facility agreement with Coinbase Credit, as disclosed in an 8-K filing. The revised agreement replaces the floating interest rate with a fixed rate, providing greater predictability in costs, as the company continues to divest its bitcoin holdings and transition into artificial intelligence and high-performance computing infrastructure.
As of Tuesday, the company's bitcoin holdings had decreased to 15,680 BTC, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. The updated 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 an additional year, subject to lender approval. The loan operates under a tiered loan-to-value framework, which may trigger collateral top-ups if the bitcoin price drops sharply, potentially leading to further depletion of the company's treasury to fund its pivot into AI and HPC.
Riot's shares have declined by approximately 9% on Tuesday, to below $17, with the company's Q1 earnings report scheduled for April 30.