Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. The revision replaces a variable interest rate with a fixed one, enhancing cost predictability as the company transitions into artificial intelligence and high-performance computing infrastructure, while also decreasing its bitcoin holdings. 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 another year, subject to lender approval. The loan operates under a loan-to-value framework, where collateral top-ups are required if the bitcoin price falls significantly, with a top-up triggered at a 70% loan-to-value ratio and liquidation at 80%. This could lead to further depletion of Riot's bitcoin treasury if the market continues to be weak, funding its pivot into AI and HPC.
Riot's shares have declined by around 9% to below $17 on Tuesday, with the company scheduled to report its Q1 earnings on April 30.