Hut 8, a prominent Bitcoin mining company, has announced that its subsidiary, Hut 8 Holdings, has entered into a credit facility agreement with Coinbase Credit worth $50 million. The purpose of this credit facility is to support the company’s general corporate operations.
According to Hut 8, the credit facility includes a $15 million term loan that will be funded shortly after the closing of the agreement. In addition, the company has the option to draw a delayed-draw term loan of $20 million within one to two months after the closing.
Furthermore, Hut 8 can borrow an additional $15 million through a delayed-draw term loan tranche within 15 business days after completing its merger with U.S. Data Mining Group, operating as US Bitcoin Corp.
The interest on the amounts borrowed under this credit facility will be calculated based on the federal funds rate on the borrowing date, with a minimum interest rate of 3.25% plus an additional 5.0%.
To secure the credit facility, Hut 8 has pledged its interest in an undisclosed amount of Bitcoin held in Coinbase Custody. The loan is set to mature 364 days after the first borrowing takes place.
CEO Jaime Leverton expressed the company’s satisfaction with the credit facility, stating that it offers additional financial flexibility while allowing them to continue their dynamic Bitcoin treasury management strategy leading up to the Bitcoin halving.
This strategic move by Hut 8 demonstrates its commitment to strengthening its position in the Bitcoin mining industry by securing substantial financial resources to support its operations and strategic initiatives.
