Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, replacing a variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to scale back its bitcoin holdings, now totaling 15,680 BTC, down from 19,368 at the start of the year. The revised agreement maintains the loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security.
The loan's maturity has been extended by 364 days, with the option for a further one-year extension, subject to lender approval. Operating under a loan-to-value framework, the loan may necessitate collateral top-ups if bitcoin's price drops significantly, potentially leading to further depletion of Riot's treasury as it pivots towards artificial intelligence and high-performance computing infrastructure. Riot's shares have declined by approximately 9% to below $17, with Q1 earnings scheduled for release on April 30.