Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed one to enhance cost predictability as the company transitions into artificial intelligence and high-performance computing infrastructure, while also reducing its bitcoin holdings. The company's bitcoin reserves have decreased to 15,680 BTC as of Tuesday, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. The revised agreement maintains the loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security. However, the maturity date 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 loan-to-value framework that may trigger collateral top-ups if bitcoin's price declines sharply, with a tiered structure requiring top-ups if the loan-to-value ratio exceeds 70% and liquidation at 80%. As a result, Riot may continue to deplete its bitcoin reserves if the cryptocurrency's price remains weak, potentially funding its pivot into AI and HPC. Riot's shares have fallen around 9% on Tuesday to below $17, with the company scheduled to report its Q1 earnings on April 30.