Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to divest its bitcoin holdings, shifting focus towards artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot held 15,680 BTC, 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 in Coinbase Custody. The maturity date has been extended by 364 days, with the option for a further one-year extension subject to lender approval. The loan operates under a tiered loan-to-value framework, where collateral top-ups are triggered if the LTV ratio exceeds 70%, and liquidation occurs at 80%. This framework leaves Riot vulnerable to further depleting its treasury if bitcoin prices continue to decline, potentially funding its pivot into AI and HPC.
Riot's shares have declined approximately 9% to below $17 on Tuesday, with Q1 earnings scheduled for release on April 30.