Coinbase Provides $50 Million Credit Line to Cryptocurrency Miner Hut 8

Hut 8 has announced the establishment of a $50 million credit facility with Coinbase Credit acting as the lender. In a statement, the North American cryptocurrency miner disclosed that the funds from the loan will be allocated for general corporate purposes, providing enhanced financial flexibility and assisting in the maintenance of an active Bitcoin treasury management strategy.

• The credit facility initially offers a $15 million term loan, followed by an additional $20 million delayed-draw term loan tranche in a subsequent borrowing occurring between one and two months after the closing.
• The agreement also encompasses another $15 million delayed-draw term loan tranche in a third borrowing within 15 business days after the completion of the previously announced merger between Hut 8 and U.S. Data Mining Group, which will form a United States-domiciled entity named “New Hut.”
• Previously, the company indicated that post-merger, the new entity is anticipated to have access to roughly 825 MW of gross energy across all six sites, encompassing self-mining, hosting, and managed infrastructure operations.
• Hut 8’s CEO Jaime Leverton remarked,

“This credit facility provides us with additional financial flexibility. Simultaneously, it ensures that we can uphold our dynamic Bitcoin treasury management strategy as we approach the halving.”

• Hut 8’s financial results for the year and quarter ending December 31st, 2022, indicated that the Canadian firm had boosted its Bitcoin holdings by 65%, despite a revenue decline of over 13% during the same period.

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