Bitcoin mining agency Hut 8 (HUT) said on Tuesday that it expanded its bitcoin-backed credit score facility with Coinbase Credit score to $130 million, up from $65 million.
The amended settlement additionally comes with a set rate of interest of 9% versus the earlier floating price of between 10.5% and 11.5%. The maturity of the power was prolonged to July 16, 2026.
“This facility has been an environment friendly supply of capital on our stability sheet,” stated Sean Glennan, Hut 8’s chief monetary officer. “The mix of improved phrases and collateral and borrower protections displays our conviction that danger self-discipline is important to constructing a resilient and environment friendly capital construction.”
In contrast to many conventional loans, this one is secured by bitcoin holdings. Coinbase, nevertheless, is restricted from rehypothecating the collateral, a measure that limits counterparty danger. The credit score line additionally features a restricted recourse clause, additional shielding Hut 8.
The corporate stated it’s going to use the extra $65 million in capital to pursue enlargement efforts.
HUT shares are greater by 7.7% on Tuesday alongside positive aspects for many of the bitcoin mining sector.
Hut 8 operates a community of mining and knowledge infrastructure belongings throughout North America, with over 1,000 megawatts (MW) of power capability beneath administration.