Hut 8 (HUT) Update: Bitcoin Miner Expands Credit Line with COIN
Bitcoin mining firm Hut 8 (HUT) announced on Tuesday that it has expanded its bitcoin-backed credit facility with Coinbase Credit to $130 million, up from $65 million. The amended agreement features a fixed interest rate of 9%, compared to the previous floating rate of between 10.5% and 11.5%. Additionally, the maturity of the facility has been extended to July 16, 2026.
“This facility has been an efficient source of capital on our balance sheet,” said Sean Glennan, Hut 8’s chief financial officer. “The combination of improved terms and collateral and borrower protections reflects our conviction that risk discipline is essential to building a resilient and efficient capital structure.”
Unlike many traditional loans, this credit facility is secured by bitcoin holdings. Coinbase is restricted from rehypothecating the collateral, which helps limit counterparty risk. The credit line also includes a limited recourse clause, providing further protection for Hut 8.
The company plans to utilize the additional $65 million in capital to pursue expansion efforts. HUT shares increased by 7.7% on Tuesday, in line with gains across the bitcoin mining sector. Hut 8 operates a network of mining and data infrastructure assets across North America, boasting over 1,000 megawatts (MW) of energy capacity under management.
