Riot Platforms has modified its credit facility agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces the variable interest rate with a fixed one, enhancing cost predictability as the company diversifies into artificial intelligence and high-performance computing infrastructure, while also decreasing its bitcoin holdings. As of Tuesday, Riot's bitcoin reserves stood at 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net.
The updated agreement maintains the same loan size and collateral structure, with the loan 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 collateral top-up is triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. This framework may lead to further depletion of Riot's bitcoin reserves if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC.
Riot's shares have fallen approximately 9% to below $17 on Tuesday, with the company scheduled to report its Q1 earnings on April 30.