Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing. This amendment replaces the variable interest rate with a fixed one, enhancing cost predictability as the company expands into artificial intelligence and high-performance computing. Meanwhile, Riot continues to decrease its bitcoin holdings, with its treasury decreasing from 19,368 BTC at the beginning of the year to 15,680 BTC as of Tuesday, according to bitcoin treasuries.net.
The revised agreement retains the same loan and collateral structure, with Riot's bitcoin, USDC, and cash held with Coinbase Custody serving as security. 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 credit facility operates under a loan-to-value framework that may require Riot to replenish collateral if bitcoin's price drops significantly, potentially leading to further depletion of its bitcoin reserves to support its strategic pivot into AI and HPC.