Riot Platforms has revised its $200 million credit agreement with Coinbase Credit, as disclosed in an 8-K filing, switching from a variable interest rate to a fixed rate for greater cost stability. This move comes as the company continues to divest its bitcoin holdings and transition into artificial intelligence and high-performance computing infrastructure. As of Tuesday, Riot held 15,680 BTC, marking a decrease from the 19,368 BTC it held at the start of the year, according to bitcoin treasuries.net. The revised agreement maintains the same loan size and collateral structure, with the loan secured by Riot's bitcoin, USDC, and cash stored with Coinbase Custody.
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 a collateral top-up is triggered if the loan-to-value ratio exceeds 70% and liquidation occurs at 80%. This framework poses a risk to Riot's treasury if bitcoin's price continues to decline, potentially forcing the company to further deplete its reserves to fund its pivot into AI and HPC.
Riot's shares have fallen by approximately 9% to below $17 on Tuesday, with the company scheduled to report its Q1 earnings on April 30.