Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, 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 and transition towards artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot'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 credit facility secured by Riot's bitcoin, USDC, and cash held in Coinbase Custody.
However, the maturity date has been extended by 364 days, with the option to further extend it by a year, subject to lender approval. The loan operates under a loan-to-value framework, where collateral top-ups are triggered if the LTV ratio exceeds 70%, and liquidation occurs at 80%. This framework could lead to further depletion of Riot's bitcoin treasury if the cryptocurrency's price continues to decline, potentially funding its pivot towards AI and HPC.
Riot's shares have declined by approximately 9% to below $17 on Tuesday, with the company scheduled to report its Q1 earnings on April 30.