Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces the variable interest rate with a fixed one, providing greater predictability in costs as the company expands into artificial intelligence and high-performance computing infrastructure, while also decreasing its bitcoin reserves. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the start of the year, according to bitcoin treasuries.net.
The updated agreement maintains the loan size and collateral structure, with the credit facility 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 further extend it by a year, subject to lender approval. The loan operates under a loan-to-value framework, where a top-up is required if the LTV ratio exceeds 70% and liquidation occurs at 80%. As a result, Riot may continue to reduce its bitcoin treasury to support its pivot into AI and HPC if bitcoin prices remain weak.
The company's shares have fallen by around 9% to below $17 on Tuesday, with Q1 earnings scheduled for release on April 30.