Hut 8 Doubles Bitcoin-Backed Credit Facility to $130 Million with Coinbase

Hut 8, a leading Bitcoin mining company, has announced a significant expansion of its Bitcoin-backed credit facility with Coinbase Credit. The facility has been doubled from $65 million to $130 million, providing the company with substantial financial resources to support its growth initiatives and enhance its digital infrastructure.

The revised Third Amended and Restated Credit Agreement introduces several enhanced terms aimed at improving Hut 8’s capital efficiency. The expansion delivers up to $65 million in incremental, non-dilutive capital, allowing Hut 8 to pursue high-priority growth opportunities without issuing new equity. This structure transitions from a floating interest rate to a fixed 9.0% rate, reducing the company’s cost of capital. The prior rate ranged between 10.5% and 11.5% over recent quarters.

The agreement includes improved collateral protections, such as a limited recourse structure and the continued enforcement of a no-rehypothecation clause—ensuring pledged Bitcoin cannot be re-lent or re-used. This move positions Hut 8 to aggressively pursue growth while maintaining financial discipline, as institutional appetite for crypto-backed lending continues to rise.

Asher Genoot, CEO of Hut 8, emphasized the company’s focus on non-dilutive financing and disciplined capital deployment. He stated, “As we advance a robust pipeline of growth opportunities, we have partnered with Coinbase to strategically double the size of our credit facility.” This partnership aligns with Hut 8's strategic goals and provides the company with the financial flexibility needed to capitalize on emerging opportunities in the Bitcoin mining sector.

CFO Sean Glennan highlighted that the facility “further strengthens its strategic value” with enhanced borrower protections and reflects Hut 8’s risk-managed approach to building a resilient balance sheet. Matt Boyd, Head of Institutional Financing at Coinbase, noted that the deepened relationship illustrates a shared commitment to “capital efficiency and responsible scaling” in the evolving digital infrastructure space.

The extension of the loan maturity to the summer of 2026 is a strategic decision that allows Hut 8 to manage its financial obligations more effectively. With a longer repayment period, the company can focus on its long-term growth strategies without the immediate pressure of short-term debt repayment. This move is expected to enhance Hut 8's financial stability and provide it with the resources needed to capitalize on emerging opportunities in the Bitcoin mining sector.

The fixed interest rate is another key aspect of the revised credit facility. By locking in a lower 9% fixed rate, Hut 8 can better manage its borrowing costs and mitigate the risks associated with fluctuating interest rates. This financial stability is crucial for a company operating in a volatile industry, as it allows Hut 8 to plan its investments and operations with greater certainty.

In summary, Hut 8's decision to double its Bitcoin-backed credit facility with Coinbase Credit to $130 million is a strategic move aimed at supporting the company's growth and enhancing its financial stability. The revised terms, including a fixed interest rate and extended maturity, provide Hut 8 with the resources and flexibility needed to pursue new opportunities and strengthen its position in the Bitcoin mining industry. This partnership with Coinbase Credit is expected to play a crucial role in Hut 8's long-term success and growth.