VERIFIEDBy Xavier Rivera· ·1 min read
Riot Platforms Fixes Rate on $200M Coinbase Loan
Riot Platforms switches its $200 million Coinbase loan to a fixed rate and extends maturity amid shrinking bitcoin holdings. The move offers cost certainty but heightens risks from loan-to-value triggers if bitcoin weakens.
Source:CoinDesk
TL;DRAI · 60 sec read
Riot Platforms amends its $200 million credit facility with Coinbase Credit, switching from a floating to a fixed interest rate while extending maturity by 364 days, per an 8-K filing.
The change provides cost predictability as Riot reduces its bitcoin holdings to 15,680 BTC as of Tuesday, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. Collateral remains bitcoin, USDC and cash held with Coinbase Custody, with an option to extend maturity another year subject to lender approval.
The loan uses a tiered loan-to-value framework, triggering collateral top-ups if the ratio exceeds 70% and liquidation at 80%, leaving limited buffer if bitcoin prices slide further. Riot pivots toward artificial intelligence and high-performance computing infrastructure.
Riot shares fall around 9% Tuesday to below $17. The company reports Q1 earnings on April 30.
The change provides cost predictability as Riot reduces its bitcoin holdings to 15,680 BTC as of Tuesday, down from 19,368 BTC at the start of the year, according to bitcoin treasuries.net. Collateral remains bitcoin, USDC and cash held with Coinbase Custody, with an option to extend maturity another year subject to lender approval.
The loan uses a tiered loan-to-value framework, triggering collateral top-ups if the ratio exceeds 70% and liquidation at 80%, leaving limited buffer if bitcoin prices slide further. Riot pivots toward artificial intelligence and high-performance computing infrastructure.
Riot shares fall around 9% Tuesday to below $17. The company reports Q1 earnings on April 30.
HELP US IMPROVE
Reader-supported
The Circuitry is a passion project I've always wanted to build, and I love the work behind it.
Running it costs real money. APIs, hosting, time. To keep improving the site and growing this into something useful for everyone, those costs have to be covered.
Any contribution is appreciated. If not, no pressure. Thanks for reading.