Coinbase Offers $50M Credit Facility to Crypto Miner Hut 8
Hut 8 announced entering into a $50 million credit facility with Coinbase Credit as the lender. In a statement, the North American crypto miner revealed that the proceeds from the loan will be used for general corporate purposes while providing it with added financial flexibility and helping it maintain a dynamic Bitcoin treasury management strategy.
- Initially, the credit facility provides a $15 million term loan, followed by an additional $20 million delayed-draw term loan tranche in a second borrowing between one and two months following the closing.
- The deal also includes another $15 million delayed-draw term loan tranche in a third borrowing within 15 business days following the completion of the previously announced merger between Hut 8 and U.S. Data Mining Group to create a United States-domiciled entity called “New Hut.”
- Previously, the company had noted that following the merger, the new entity is expected to have access to approximately 825 MW of gross energy across all six sites with self-mining, hosting, and managed infrastructure operations.
- Hut 8’s CEO Jaime Leverton commented,
“This credit facility gives us additional financial flexibility. At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”
- Hut 8’s financial results for the year and quarter that ended December 31st, 2022 revealed that the Canadian firm had increased its Bitcoin holdings by 65% even as its revenue plunged by over 13% during the period.
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