Riot Platforms has modified its $200 million credit agreement with Coinbase Credit, replacing the variable interest rate with a fixed one to enhance cost predictability. This development comes as the company continues to decrease its bitcoin holdings, now totaling 15,680 BTC, down from 19,368 at the start of the year.
The shift to a fixed rate is expected to provide stability as Riot transitions into artificial intelligence and high-performance computing infrastructure. The revised agreement retains the same loan size and collateral structure, with the credit facility secured by Riot's bitcoin, USDC, and cash held with Coinbase Custody. However, the maturity date has been extended by 364 days, with the option to extend further, subject to lender approval.
The loan operates under a tiered loan-to-value framework, which may trigger collateral top-ups if bitcoin's price drops significantly, potentially leading to further depletion of Riot's treasury as it funds its AI and HPC ventures. Following this announcement, Riot's shares have declined by around 9% to below $17, with the company's Q1 earnings report scheduled for April 30.