Riot Platforms has modified its $200 million credit facility 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 occurs as the company continues to divest its bitcoin holdings and transition 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 retains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody.
The loan's maturity 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%. Consequently, 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.
Riot's shares have declined by approximately 9% on Tuesday to below $17, with the company scheduled to report its Q1 earnings on April 30.