Bitcoin mining agency Hut 8 (HUT) mentioned 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 hard and fast rate of interest of 9% versus the earlier floating charge of between 10.5% and 11.5%. The maturity of the ability was prolonged to July 16, 2026.
“This facility has been an environment friendly supply of capital on our stability sheet,” mentioned 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.”
Not like many conventional loans, this one is secured by bitcoin holdings. Coinbase, nonetheless, 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 mentioned it is going to use the extra $65 million in capital to pursue growth efforts.
HUT shares are greater by 7.7% on Tuesday alongside positive aspects for a lot of the bitcoin mining sector.
Hut 8 operates a community of mining and information infrastructure property throughout North America, with over 1,000 megawatts (MW) of vitality capability underneath administration.
