Hut 8 doubles Bitcoin-backed credit line with Coinbase Credit to $130 million, locks fixed rate
Quick Take
- The amended deal extends the loan’s maturity to next summer and allows Hut 8 to tap an additional $65 million in non-dilutive capital.
- Hut 8 recently posted $134.3 million in net losses for the first quarter, showing a 60% year-over-year decline in revenue.
Bitcoin infrastructure firm Hut 8 (ticker HUT) has doubled its credit facility with Coinbase Credit to $130 million, the companies said on Tuesday, touting improved terms including a fixed 9% interest rate and stronger collateral protections.
The expanded and amended deal, which extends the loan’s maturity to July 2026, allows Hut 8 to tap an additional $65 million in non-dilutive capital. The company says the new structure better positions it to pursue near-term opportunities across its Bitcoin mining and high-performance computing operations.
Previously a floating-rate facility, the amended agreement shifts to a fixed 9% interest rate — a material drop from the 10.5%–11.5% range that applied in recent quarters. The updated structure also retains a no-rehypothecation covenant on pledged BTC and introduces a limited recourse framework, reducing exposure for Hut 8 if markets sour.
The crypto miner first secured a $50 million credit facility from Coinbase Credit in 2023.
"As we advance a robust pipeline of growth opportunities, we’ve partnered with Coinbase to strategically double the size of our credit facility and deliver significantly improved terms," Hut 8 CEO Asher Genoot said in the release.
The move comes as Bitcoin miners face increasing pressure to optimize capital structures following the latest Bitcoin halving in April 2024 and continued hashrate growth. For Hut 8, the facility offers a non-equity path to scale without diluting shareholders. Last month, Hut 8 posted $134.3 million in net losses for the first quarter, with about a 60% year-over-year decline in revenue.
Coinbase’s Matt Boyd, who leads institutional financing, said the firm is focused on providing "non-dilutive financing with enhanced collateral protections" to digital infrastructure players like Hut 8.
Hut 8's stock is up 6% in Tuesday's trading session to $16.83, according to The Block's HUT price data. Shares have risen about 34% over the past year, giving it a $1.7 billion market cap.
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