Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revised terms replace a variable interest rate with a fixed one, enhancing cost predictability as the company transitions 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, down from 19,368 at the start of the year, according to bitcoin treasuries.net. The updated agreement maintains the loan size and collateral structure, with the credit facility 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 extend it by an additional 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. On Tuesday, Riot's shares fell by around 9% to below $17, with the company's Q1 earnings report scheduled for April 30.