Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings and transition into artificial intelligence and high-performance computing infrastructure.
The company's bitcoin reserves have decreased to 15,680 BTC as of Tuesday, down from 19,368 BTC at the beginning 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 credit facility's maturity has been extended by 364 days, with the option to further extend it 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%.
As a result, Riot may continue to deplete its bitcoin treasury if the cryptocurrency's price remains weak, using the funds to support its pivot into AI and HPC. The company's shares have declined by approximately 9% on Tuesday, falling below $17, ahead of its Q1 earnings report on April 30.