Riot Extends $200 Million Coinbase Loan as Falling Bitcoin Holdings Raise Risk

Riot Platforms has amended its $200 million credit facility with Coinbase Credit, replacing a floating interest rate with a fixed rate to improve borrowing cost predictability. According to the company’s latest regulatory filing, the loan maturity has been extended by 364 days, with an option to extend it for an additional year if lender approval is granted.

The size of the credit facility and its collateral structure remain unchanged. Riot continues to secure the loan using bitcoin, USDC and cash held with Coinbase Custody. The adjustment comes as the company increases its focus on artificial intelligence (AI) and high-performance computing (HPC) infrastructure alongside its mining operations.

Bitcoin Treasury Decline Raises Loan Risk Exposure

Riot’s bitcoin holdings have dropped significantly this year, falling to 15,680 BTC from 19,368 BTC at the start of the year. The shrinking treasury reduces the buffer available against loan-to-value (LTV) thresholds that govern the credit agreement.

Under the tiered LTV framework, Riot would be required to add collateral if the LTV ratio exceeds 70%, while forced liquidation could occur if the ratio reaches 80%. If bitcoin prices weaken further, the company may need to continue selling BTC to meet collateral requirements while funding its transition into AI and HPC-related infrastructure.