Hut 8 doubles bitcoin-backed credit facility with Coinbase and gets a lower borrowing rate, too

Bitcoin mining company Hut 8 increased its bitcoin-backed credit facility with Coinbase to $130 million from the initial $65 million it announced in January, and will extend the maturity date to July 16, 2026.

Hut 8 shares were up 2.5% in premarket trading. Meanwhile, Coinbase shares were up 1.2%.

Hut 8 said the increased facility “reflects significant improvements in both economic and structural terms.”

The new terms include “up to $65 million in incremental, non-dilutive capital” and a move to a 9% fixed interest rate. From Q4 2023 through Q1 2025, Hut 8 paid a floating interest rate between 10.5% and 11.5%.

“As we advance a robust pipeline of growth opportunities, we have partnered with Coinbase to strategically double the size of our credit facility and deliver significantly improved terms,” Asher Genoot, CEO of Hut 8, said in the press release.

Hut 8 is the ninth-largest corporate bitcoin holder, with 10,273 bitcoin, surpassing Coinbase, which is at the 10th spot, with 9,267 bitcoin, according to Bitcoin Treasuries.