Hut 8 Expands Bitcoin-Backed Credit Line with Coinbase to $130 Million, Secures Favorable Interest Terms
Enhanced Financing Facility Adds $65 Million in Liquidity and Reduces Borrowing Costs
As of June 24, 2025, Hut 8, a prominent player in the Bitcoin mining industry, announced a significant increase in its collateralized credit arrangement with Coinbase Credit, elevating the total borrowing capacity from $65 million to $130 million.
This revised credit agreement introduces a fixed interest rate of 9%, a notable improvement from the previous variable rate ranging between 10.5% and 11.5%. Additionally, the maturity date has been extended to July 16, 2026, providing the company with a longer-term financing solution.
Strategic Financial Management and Risk Mitigation
Sean Glennan, Hut 8’s Chief Financial Officer, emphasized the strategic importance of this credit facility, stating, “This financing arrangement has proven to be an effective source of capital for our operations. The improved terms, coupled with enhanced collateral protections and risk mitigation measures, underscore our commitment to maintaining a disciplined and resilient capital structure.”
Collateral Security and Risk Controls
Unlike conventional loans, this credit line is secured by Hut 8’s Bitcoin holdings. To minimize counterparty risk, Coinbase Credit is restricted from rehypothecating the collateral, ensuring the company’s assets remain protected. The agreement also incorporates a limited recourse clause, further safeguarding Hut 8’s interests in the event of default.
Use of Additional Capital and Market Response
The company plans to deploy the newly available $65 million to accelerate its expansion initiatives, including scaling mining operations and upgrading infrastructure. Following the announcement, Hut 8’s stock experienced a 7.7% increase, reflecting positive investor sentiment alongside a broader rally in the Bitcoin mining sector.
Operational Footprint and Industry Context
Hut 8 operates a diversified portfolio of mining and data infrastructure assets across North America, managing over 1,000 megawatts (MW) of energy capacity. The firm’s strategic financial moves come amid a dynamic industry landscape, where Bitcoin miners are increasingly leveraging innovative financing solutions to fund growth and manage volatility.
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About the Author
Tom Carreras
Tom specializes in reporting on financial markets, Bitcoin mining developments, and the adoption of cryptocurrencies in Latin America. Holding a bachelor’s degree in English literature from McGill University, he is often based in Costa Rica. He owns Bitcoin valued above the $1,000 disclosure threshold required by CoinDesk.
