Hut 8 Doubles Bitcoin-Backed Loan to $130 Million at 9% Interest

Hut 8 Mining Corp., a leading Bitcoin mining company, has announced a significant expansion of its Bitcoin-backed loan facility with Coinbase. The total amount of the loan has been doubled to $130 million, adding $65 million in capital availability. This amendment also includes a reduction in the interest rate to a fixed 9%, down from the previous floating rate of between 10.5% and 11.5%. The maturity of the facility has been extended to July 16, 2026.

The additional capital will be utilized by Hut 8 to pursue expansion efforts, allowing the company to invest further in its mining operations. The loan is secured by Hut 8's Bitcoin holdings, with protective measures in place to limit counterparty risk. Coinbase is restricted from rehypothecating the collateral, and the credit line includes a limited recourse clause, providing additional shielding for Hut 8.

This strategic move by Hut 8 reflects the company's growing operational needs and its commitment to optimizing its financial structure. By securing additional capital at a lower interest rate, Hut 8 can enhance its mining capacity and potentially increase its Bitcoin holdings. This financial maneuver positions Hut 8 for future growth and innovation in the competitive Bitcoin mining industry.

The amended facility demonstrates the confidence that financial institutions have in Hut 8's ability to manage its Bitcoin holdings and generate returns. This collaboration between Hut 8 and Coinbase highlights the growing synergy between mining companies and financial institutions in the cryptocurrency space, as both parties seek to capitalize on the opportunities presented by digital assets.

Hut 8 operates a network of mining and data infrastructure assets across North America, with over 1,000 megawatts (MW) of energy capacity under management. The company's decision to double its Bitcoin-backed loan and secure a lower interest rate is a testament to its strategic vision and commitment to growth in the Bitcoin mining industry.