Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, 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, with a current stash of 15,680 BTC, down from 19,368 at the beginning of the year, according to bitcoin treasuries.net. The revised agreement features a fixed loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held in Coinbase Custody.
The loan maturity has been extended by 364 days, with the option to prolong it further, subject to lender approval. The loan operates under a tiered loan-to-value framework, where a top-up is triggered if the LTV ratio surpasses 70% and liquidation occurs at 80%. Consequently, Riot may continue to deplete its bitcoin reserve to fund its pivot into artificial intelligence and high-performance computing infrastructure if bitcoin's price continues to decline. The company's shares have fallen by approximately 9% to below $17, with Q1 earnings scheduled for release on April 30.