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 decrease its bitcoin holdings and shift its focus towards artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot held 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net.
The revised agreement retains the same loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the loan's maturity has been extended by 364 days, with the option to extend it further by a year, subject to lender approval.
The loan operates under a tiered loan-to-value framework, where a top-up is triggered if the LTV ratio exceeds 70% and liquidation occurs at 80%. Consequently, if bitcoin's price continues to decline, Riot may need to further deplete its treasury to meet these requirements, potentially 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.