Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing the variable interest rate with a fixed rate to enhance cost predictability while continuing to decrease its bitcoin holdings. This change provides greater stability as Riot transitions into artificial intelligence and high-performance computing infrastructure.
As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the beginning of the year, according to bitcoin treasuries.net. The revised agreement maintains the same 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 loan-to-value framework, which may require Riot to replenish its collateral if bitcoin's price experiences a sharp decline.
The loan's tiered framework triggers a top-up when the loan-to-value ratio exceeds 70% and liquidation occurs at 80%. Consequently, if bitcoin's price continues to weaken, Riot may need to further deplete its treasury to support its pivot into AI and HPC. Riot's shares have declined by around 9% on Tuesday, falling below $17, with the company scheduled to report its Q1 earnings on April 30.