Riot Platforms has modified its $200 million credit agreement 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 decrease its bitcoin holdings and diversify into artificial intelligence and high-performance computing infrastructure.
As of Tuesday, Riot held 15,680 BTC, down from 19,368 BTC at the beginning of the year, according to bitcoin treasuries.net. The updated agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, 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, which may trigger collateral top-ups if bitcoin's price falls sharply, potentially leading to further depletion of Riot's treasury to support its pivot into AI and HPC.
Riot's shares have declined by around 9% on Tuesday, to below $17, with the company scheduled to report its Q1 earnings on April 30.