HomeCrypto NewsCoindeskHut 8 Doubles Bitcoin-Backed Loan With Coinbase to $130M, Locks in Lower Rate

Bitcoin mining firm Hut 8 (HUT) said on Tuesday that it expanded its bitcoin-backed credit facility with Coinbase Credit to $130 million, up from $65 million.

The amended agreement also comes with a fixed interest rate of 9% versus the previous floating rate of between 10.5% and 11.5%. The maturity of the facility was extended to July 16, 2026.

โ€œThis facility has been an efficient source of capital on our balance sheet,โ€ said Sean Glennan, Hut 8โ€™s chief financial officer. โ€œThe 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.โ€

Unlike many traditional loans, this one is secured by bitcoin holdings. Coinbase, however, is restricted from rehypothecating the collateral, a measure that limits counterparty risk. The credit line also includes a limited recourse clause, further shielding Hut 8.

The company said it will use the additional $65 million in capital to pursue expansion efforts.

HUT shares are higher by 7.7% on Tuesday alongside gains for most of the bitcoin mining sector.

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.



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