Hut 8 Locks In Lower Borrowing Costs With Fixed-Rate Coinbase Facility

Hut 8 Corp. HUT expanded its strategic partnership with Coinbase Credit Inc., a subsidiary of Coinbase Global, Inc. COIN, announcing a revised agreement that doubles the size of its Bitcoin-secured credit facility and extends its maturity by over a year.

Through a newly amended credit deal, the digital infrastructure and energy platform boosted its borrowing capacity from $65 million to as much as $130 million while locking in a fixed 9.0% interest rate and pushing the loan’s maturity to July 16, 2026.

The agreement introduces several benefits for Hut 8, including a shift from a floating to a fixed interest rate, down from previous rates that ranged between 10.5% and 11.5%.

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The updated facility also includes better protections for both borrower and lender, such as a limited recourse framework and continued restrictions against rehypothecation of Bitcoin collateral.

CEO Asher Genoot said the expanded credit facility enables Hut 8 to fund upcoming initiatives without issuing new equity. “We strategically doubled our facility with Coinbase to accelerate execution of near-term growth opportunities,” he stated, emphasizing the non-dilutive nature of the funding and improved capital efficiency.

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CFO Sean Glennan noted the upgraded terms reinforce Hut 8’s commitment to risk-managed financing. He highlighted the facility’s role in strengthening the company’s capital structure while avoiding excessive risk. Coinbase’s institutional lending head Matt Boyd echoed those sentiments, citing a shared focus on efficient, scalable growth in the digital infrastructure space.

Other companies in the crypto space include Riot Platforms Inc. RIOT and CleanSpark Inc. CLSK. Investors can also track crypto-focused performance through ETFs such as Grayscale Bitcoin Trust GBTC and Valkyrie Bitcoin Miners ETF WGMI.

Price Action: HUT shares are trading higher by 2.33% to $16.26 and COIN stock is up 1.54% at $312.32 premarket at last check Tuesday.

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