Riot Platforms has revised its $200 million credit 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 downsize its bitcoin holdings and shift its focus towards artificial intelligence and high-performance computing infrastructure.
As of Tuesday, Riot held 15,680 BTC, marking a decline from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net. The amended agreement retains the same loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security for the credit facility. The maturity date has been extended by 364 days, with the option to further extend it by a 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 continued depletion of Riot's treasury if bitcoin prices remain weak, potentially funding its pivot into AI and HPC. Riot's shares have declined by approximately 9% to below $17 on Tuesday, with the company scheduled to report its Q1 earnings on April 30.