Riot Platforms has revised its credit facility with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings and expand into artificial intelligence and high-performance computing infrastructure.
As of Tuesday, Riot's bitcoin holdings stood at 15,680, down from 19,368 at the start 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 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 tiered loan-to-value framework, where collateral top-ups are 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 treasury if the cryptocurrency's price continues to decline, potentially funding the company's pivot into AI and HPC.
On Tuesday, Riot's shares fell by around 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.