Hut 8 Expands Bitcoin-Backed Credit Facility with Coinbase to $130 Million
Hut 8 (HUT) has increased its bitcoin-backed credit facility with Coinbase Credit to $130 million from $65 million. Key details include:
- Fixed interest rate reduced to 9%, previously between 10.5% and 11.5%
- Maturity extended to July 16, 2026
- Secured by bitcoin holdings, with restrictions on rehypothecation to limit counterparty risk
- Includes a limited recourse clause for additional protection
- Additional $65 million will be allocated for expansion efforts
HUT shares rose by 7.7%, reflecting gains across the bitcoin mining sector. Hut 8 manages over 1,000 megawatts (MW) of energy capacity across North America.