Hut 8 Doubles Bitcoin-Backed Loan With Coinbase to $130M, Locks in Lower Rate

Bitcoin mining firm Hut 8 (HUT) said on Tuesday that it expanded its bitcoin-backed credit facility with Coinbase Credit to $130 million, up from $65 million.

The amended agreement also comes with a fixed interest rate of 9% versus the previous floating rate of between 10.5% and 11.5%. The maturity of the facility was extended to July 16, 2026.

“This facility has been an efficient source of capital on our balance sheet,” said Sean Glennan, Hut 8’s chief financial officer. “The combination of improved terms and collateral and borrower protections reflects our conviction that risk discipline is essential to building a resilient and efficient capital structure.”

Unlike many traditional loans, this one is secured by bitcoin holdings. Coinbase, however, is restricted from rehypothecating the collateral, a measure that limits counterparty risk. The credit line also includes a limited recourse clause, further shielding Hut 8.

The company said it will use the additional $65 million in capital to pursue expansion efforts.

HUT shares are higher by 7.7% on Tuesday alongside gains for most of the bitcoin mining sector.

Hut 8 operates a network of mining and data infrastructure assets across North America, with over 1,000 megawatts (MW) of energy capacity under management.