Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to decrease its bitcoin holdings, currently possessing 15,680 BTC, down from 19,368 at the start of the year. The revised agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. 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, which may trigger collateral top-ups if bitcoin's price drops significantly, potentially leading to further depletion of Riot's treasury. As the company shifts its focus towards artificial intelligence and high-performance computing infrastructure, it faces the challenge of a shrinking bitcoin reserve, which could be exacerbated by bitcoin's price volatility.
Riot's shares have declined by approximately 9% to below $17, with the company's Q1 earnings report scheduled for April 30.