Riot Platforms has modified its credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one, thereby enhancing cost predictability. This development comes as the company is diversifying its focus towards artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin reserves. As of the latest update, Riot's bitcoin holdings have decreased to 15,680 BTC from 19,368 BTC at the beginning of the year, according to data from bitcoin treasuries.net. The revised credit facility retains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash holdings with Coinbase Custody.
The maturity period has been extended by 364 days, with the possibility of a further one-year extension, subject to lender approval. The loan operates under a loan-to-value framework, where a sharp decline in bitcoin prices could necessitate additional collateral, potentially leading to further depletion of Riot's bitcoin treasury. This could continue to fund the company's pivot into AI and HPC. Riot's shares have declined by approximately 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.