Riot Adjusts $200 Million Coinbase Credit Agreement to Fixed Rate Amid BTC Volatility

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On April 28, Nasdaq-listed Bitcoin mining company Riot Platforms announced adjustments to its $200 million Bitcoin collateral credit agreement with Coinbase, aimed at reducing financing cost volatility and minimizing the risk of forced liquidation due to short-term market fluctuations. The new agreement changes the previously floating interest rate linked to the U.S. federal funds rate to a fixed annual interest rate structure, while extending the originally 364-day loan set to mature in April 2026, allowing for an additional one-year extension. Additionally, the new agreement introduces a ‘two-day rule,’ which means that margin calls or deleveraging mechanisms will only be triggered if the value of the Bitcoin collateral falls below the trigger line for two consecutive days, thus avoiding forced liquidation from a single-day price drop. 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.

BTC3.01%
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