Hut 8 Expands Bitcoin Credit Line to $130M
Bitcoin infrastructure firm Hut 8 has doubled its credit line with Coinbase Credit to $130 million. The agreement includes improved terms, like a fixed 9% interest rate, down from a previous range of 10.5%-11.5%, and increased collateral protections. The loan, now maturing in July 2026, provides an additional $65 million in non-dilutive funding, positioning Hut 8 to capitalize on near-term growth opportunities in Bitcoin mining and computing. Initially secured in 2023, the credit facility offers a non-equity path for expansion, crucial after Bitcoin's recent halving. Hut 8 has also faced significant net losses, further underscoring the importance of this financial structure. Hut 8's stock has responded positively, rising 6% to $16.83, contributing to a 34% increase over the past year.
FAQ
❓ What are the terms of Hut 8's expanded credit line?
The new terms include a $130 million line with a fixed 9% interest rate and improved collateral protections.
❓ Why did Hut 8 expand its credit facility?
To access more capital without diluting shareholder equity, especially important post-Bitcoin halving.
❓ How has the expansion affected Hut 8's stock?
Hut 8's stock rose 6% after the announcement, contributing to a 34% annual increase.