Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing the floating interest rate with a fixed rate to provide greater predictability in costs. This development occurs as the company continues to decrease its bitcoin holdings and expand into artificial intelligence and high-performance computing infrastructure. As of Tuesday, the company's bitcoin holdings stood at 15,680, down from 19,368 at the beginning of the year, according to bitcoin treasuries.net. The revised agreement maintains the loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody.
The maturity of the loan 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 top-up is triggered if the loan-to-value ratio exceeds 70% and liquidation occurs at 80%.
As a result, Riot may continue to deplete its bitcoin treasury if the cryptocurrency's price remains weak, in order to fund its pivot into AI and HPC. The company's shares have declined by approximately 9% on Tuesday, to below $17, with Q1 earnings scheduled to be reported on April 30.