Coinbase Provides $50M Credit Facility To Crypto Miner Hut 8

Hut 8 announced the entry 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 additional financial flexibility and helping maintain a dynamic bitcoin treasury management strategy.

• Initially, the credit facility provides for a $15 million term loan, followed by an additional $20 million delayed-drawal term loan tranche in second borrowing between one and two months after closing.
• The deal follows the completion of a previously announced merger between Hut 8 and US Data Mining Group to create a US-domiciled entity called “New Hut”, a third borrowing of $15 million in a delayed drawdown within 15 business days. Term loan installment is also included. ,
• Previously, the company had noted Post 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 CEO Jaime Leverton commented,

“This credit facility provides us with additional financial flexibility. At the same time, it ensures that we can maintain our dynamic bitcoin treasury management strategy well into the halving.”

• Hut 8’s financial results for the year and quarter ending December 31, 2022, showed the Canadian firm had increased its bitcoin holdings by 65%, while its revenue fell by more than 13% during the period .

Hut 8 announced the entry 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 additional financial flexibility and helping maintain a dynamic bitcoin treasury management strategy.

• Initially, the credit facility provides for a $15 million term loan, followed by an additional $20 million delayed-drawal term loan tranche in second borrowing between one and two months after closing.
• The deal follows the completion of a previously announced merger between Hut 8 and US Data Mining Group to create a US-domiciled entity called “New Hut”, a third borrowing of $15 million in a delayed drawdown within 15 business days. Term loan installment is also included. ,
• Previously, the company had noted Post 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 CEO Jaime Leverton commented,

“This credit facility provides us with additional financial flexibility. At the same time, it ensures that we can maintain our dynamic bitcoin treasury management strategy well into the halving.”

• Hut 8’s financial results for the year and quarter ending December 31, 2022, showed the Canadian firm had increased its bitcoin holdings by 65%, while its revenue fell by more than 13% during the period .