Hut 8 Corp, a Nasdaq listed energy infrastructure and Bitcoin mining company listed, has doubled its Bitcoin-backed credit facility with Coinbase Credit to $130 million. The move extends the loan’s maturity to July 2026 and locks in a fixed interest rate.
As per the official statements from the press release, the amended agreements have pushed to increase the previous credit line of $65 million to $130 million. In return, the deal provides Hut 8 with non-dilutive capital to fuel its growth pipeline.
The deal also includes conversion from a floating-rate structure to a fixed interest rate of 9.0% as a condition. This would help improve Hut 8’s overall cost of capital, compared to a stated interest rate ranging from 10.5% to 11.5% between the Q4 2023 and Q1 of 2025. This fixed-rate structure shields Hut 8 from potential interest rate hikes, a departure from the variable-rate norm in crypto lending.
Hut 8 CEO Asher Genoot highlighted the partnership’s focus on “risk-managed growth,” emphasizing improved terms like a no-rehypothecation covenant—ensuring pledged Bitcoin does not reused as collateral.
“As we advance a robust pipeline of growth opportunities, we have partnered with Coinbase to strategically double the size of our credit facility and deliver significantly improved terms,” said Asher, adding, “The amended structure reflects a shared commitment to disciplined growth and leveraging flexible, non-dilutive capital as we position ourselves to execute on opportunities in our pipeline.”
As the crypto landscape evolves, Hut 8’s bold financing could signal a maturing industry—or a calculated gamble in an unpredictable market.
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