Riot adjusts $200 million Coinbase credit line agreement to address BTC volatility with fixed interest rates and buffer mechanisms

Golden Finance reports that on April 28th, Nasdaq-listed Bitcoin mining company Riot Platforms announced an adjustment to its $200 million Bitcoin collateral loan agreement with Coinbase to reduce financing cost volatility and minimize the risk of forced liquidation caused by sharp short-term market fluctuations. The new agreement changes the floating interest rate loan, originally linked to the U.S. federal funds rate, to a fixed annual interest rate structure, extends the original 364-day loan due in April 2026, and allows for an additional one-year extension.
In addition, the new agreement introduces a “two-day rule,” meaning that only after the Bitcoin collateral value falls below the trigger line for two consecutive days will additional margin or deleveraging mechanisms be activated, avoiding passive liquidation triggered by a single-day plunge. In the first quarter of this year, Riot sold 3,778 Bitcoins, cashing out approximately $289.5 million to cope with pressure on mining profits.