Hut 8 gets $50M credit from Coinbase.
- Hut 8 Mining has secured a $50 million loan facility from Coinbase Credit, a subsidiary of crypto exchange Coinbase.
- The loan facility will help Hut 8 support its operations, including its merger with US-based miner Bitcoin Corp (USBTC).
- The loan facility can be accessed in three tranches, with the first tranche being a $15 million term loan. Hut 8 will have the option to draw $20 million and $15 million after the first tranche.
- The loan facility will mature one year after the first borrowing and will bear interest.
- Hut 8 CEO Jaime Leverton stated that the loan will provide the company with financial flexibility ahead of Bitcoin’s halving.
Hut 8 Mining, a Bitcoin mining company, has announced that it has secured a $50 million loan facility from Coinbase Credit, a subsidiary of cryptocurrency exchange Coinbase. The loan facility will be used by Hut 8 to support its operations, including the finalization of its merger with US-based miner Bitcoin Corp (USBTC).
Financial flexibility
According to a press release published on Monday, the loan facility can be accessed in three tranches. The first tranche is a $15 million term loan, and there are options for further drawings of $20 million and $15 million. The second tranche will be a delayed draw term facility available one to two months later. Hut 8 will be able to tap into the third tranche of $15 million 15 business days after its merger with USBTC is completed. The loan facility will mature one year after the first borrowing and will bear interest.
Hut 8 CEO Jaime Leverton commented that the loan facility will provide the company with financial flexibility ahead of Bitcoin’s halving. She noted that the loan will help the company maintain its dynamic Bitcoin treasury as the market edges closer to the next Bitcoin halving.
The loan obligations are secured by the miner’s Bitcoin held by Coinbase Custody. Hut 8’s stock was down 9% at the time of writing, although it remained more than 200% up in 2023 after rallying alongside cryptocurrencies. COIN shares were trading at 2.3% higher on the day and 87% YTD.
