Riot Platforms has modified its $200 million credit facility with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed rate to enhance cost predictability. The company is simultaneously reducing its bitcoin holdings as it shifts focus towards artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot held 15,680 BTC, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. 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 has been extended by 364 days, with the option to extend it by an additional 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, Riot may continue to deplete its bitcoin reserves if the cryptocurrency's price continues to decline, potentially funding its pivot into AI and HPC.
Riot's shares have fallen by approximately 9% on Tuesday to below $17, with the company scheduled to report its Q1 earnings on April 30.