Hut 8 announced on Tuesday that it has increased its bitcoin-backed credit facility with Coinbase to $130 million, doubling the previous amount of $65 million. The new agreement secures a fixed interest rate of 9%, a reduction from the floating rate that varied between 10.5% and 11.5%. The facility’s maturity has also been extended to July 16, 2026.

Key Updates:

• The additional $65 million will be allocated for expansion projects, with the loan secured by Hut 8’s bitcoin holdings and additional protections against counterparty risk.
• This facility offers an efficient capital source for Hut 8’s operations.

“This facility has been an efficient source of capital on our balance sheet,” said Sean Glennan, Hut 8’s Chief Financial Officer. Translation: “Esta instalación ha sido una fuente eficiente de capital en nuestro balance general.”

Unlike traditional loans, this credit line is backed by bitcoin holdings, with measures in place to limit risk. The company noted that it plans to utilize the new capital for further expansion, while HUT shares have seen a 7.7% increase, aligning with gains across the bitcoin mining industry.

Hut 8 manages a substantial network of mining and data infrastructure across North America, overseeing over 1,000 megawatts of energy capacity.