Riot Platforms has modified its existing $200 million credit agreement with Coinbase Credit, as disclosed in a recent 8-K filing. This amendment replaces the variable interest rate with a fixed rate, enhancing cost predictability as the company diversifies into artificial intelligence and high-performance computing infrastructure, while simultaneously reducing its bitcoin holdings.
As of Tuesday, Riot's bitcoin reserves stood at 15,680 BTC, marking a decline from the 19,368 BTC held at the beginning of the year, according to data from bitcoin treasuries.net. The revised agreement retains the original loan size and collateral structure, with Riot's bitcoin, USDC, and cash held in 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. The credit facility operates under a loan-to-value framework, where collateral top-ups are triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%.
This framework poses a risk that Riot may continue to deplete its bitcoin treasury to meet these obligations if the bitcoin price remains weak, thereby funding its strategic pivot into AI and HPC. Following the announcement, Riot's shares declined by approximately 9% on Tuesday to below $17, with the company scheduled to report its Q1 earnings on April 30.