Hut 8 Doubles Bitcoin-Backed Loan with Coinbase to $130M, Secures Lower Interest Rate
Bitcoin mining company Hut 8 (HUT) announced on June 24, 2025, that it has expanded its bitcoin-backed credit facility with Coinbase Credit from $65 million to $130 million. The amended agreement includes a fixed interest rate of 9%, down from the previous floating rate of 10.5%–11.5%, and extends the maturity date to July 16, 2026.
Key Improvements to the Credit Facility
- Increased Capital Availability: Additional $65 million for expansion efforts.
- Lower Interest Rate: Fixed at 9%, reducing financial strain.
- Extended Maturity: Now set for July 2026, providing longer-term stability.
Sean Glennan, Hut 8’s CFO, emphasized the facility’s role in strengthening the company’s balance sheet: "The improved terms reflect our commitment to risk discipline and building a resilient capital structure."
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Risk Mitigation Features
- Collateral Protection: Bitcoin holdings secure the loan, with Coinbase restricted from rehypothecation.
- Limited Recourse Clause: Shields Hut 8 from excessive lender claims.
Market Reaction
HUT shares rose 7.7% following the announcement, aligning with broader gains in the bitcoin mining sector.
FAQs
1. How will Hut 8 use the additional $65 million?
The funds will support expansion initiatives, including energy infrastructure and mining capacity.
2. What are the benefits of a fixed interest rate?
It provides predictable debt servicing costs, unlike variable rates susceptible to market fluctuations.
3. Why is the limited recourse clause important?
It limits Hut 8’s liability, ensuring lender claims cannot exceed the collateral’s value.
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Hut 8’s Market Position
With over 1,000 MW of energy capacity across North America, Hut 8 ranks among the top bitcoin miners by operational scale.