Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, switching from a variable to a fixed interest rate to enhance cost predictability while continuing to decrease its bitcoin holdings. This adjustment provides greater stability as the company transitions 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 start of the year, according to bitcoin treasuries.net. The revised agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody.
The maturity date 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 loan-to-value framework, which may require Riot to replenish collateral if bitcoin's price drops significantly, potentially leading to further depletion of its treasury to support its pivot into AI and HPC.
Riot's shares have fallen by around 9% to below $17, with the company scheduled to report its Q1 earnings on April 30.