Riot Platforms converts $200M Coinbase loan to fixed rate

Bitcoin miner Riot Platforms (RIOT) has converted its $200 million loan agreement with Coinbase from a variable to a fixed interest rate to enhance cost predictability, CoinDesk reported. The loan's maturity has also been extended by 364 days, with an option for an additional one-year extension subject to lender approval. The loan size and collateral structure, which includes Bitcoin, USDC, and cash held in Coinbase Custody, remain unchanged. CoinDesk noted that while Riot secured a fixed rate and an extended maturity, the company appears to have little room to maneuver against price drops due to its reduced Bitcoin holdings and loan-to-value (LTV) triggers. Riot has been shifting its business focus to artificial intelligence (AI) and high-performance computing (HPC) infrastructure while continuously reducing its Bitcoin reserves. The company's Bitcoin holdings have decreased from 19,368 BTC at the start of the year to 15,680 BTC.