Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, replacing a variable interest rate with a fixed rate to enhance cost predictability. This development comes as the company continues to decrease its bitcoin holdings and diversify into 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 loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. The loan's maturity has been extended by 364 days, with the option to extend it further by a year, subject to lender approval.
The loan operates under a tiered loan-to-value framework, where collateral top-ups are triggered if the loan-to-value ratio exceeds 70%, and liquidation occurs at 80%. Consequently, Riot may continue to reduce its bitcoin holdings if the cryptocurrency's price remains weak, using the proceeds to fund its pivot into AI and HPC.
Riot's shares have declined by approximately 9% to below $17, with the company's Q1 earnings report scheduled for April 30.