Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one, thereby enhancing cost predictability as the company transitions into AI and high-performance computing infrastructure while continuing to decrease its bitcoin reserves. As of Tuesday, Riot held 15,680 BTC, a decrease from the 19,368 BTC it held at the beginning of the year, according to bitcoin treasuries.net. The revised agreement maintains the same loan size and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security for the credit facility.
The maturity date has been extended by 364 days, with the option to extend it by an additional year, 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%.
As a result, if bitcoin prices continue to decline, Riot may need to further deplete its treasury to meet these requirements, potentially impacting its AI and HPC business pivot. Riot's shares have fallen by approximately 9% to below $17 on Tuesday, with the company's Q1 earnings report scheduled for April 30.