• Hut 8 Mining, a Canadian Bitcoin (BTC) mining company, has secured a credit facility from Coinbase Credit worth $50 million.
• The loan will be used to maintain the company’s dynamic Bitcoin treasury management strategy going into the halving.
• Hut 8 has one of the largest self-mined Bitcoin stacks of any publicly traded company which allows it to maintain its hodl strategy while having financial flexibility.
Hut 8 Secures $50M Loan From Coinbase Credit
The Canadian Bitcoin (BTC) mining company, Hut 8 Mining, has secured a credit facility from a subsidiary of the United States-based cryptocurrency exchange, Coinbase. Hut 8 officially announced on June 26 that it entered a $50 million credit agreement with Coinbase Credit. The loan proceeds will be used for general corporate purposes.
The credit facility provides a $15 million term loan that is expected to be funded at or subsequently after closing. The loan provides an option of getting an additional $20 million delayed-draw term loan tranche in a second borrowing between one and two months following closing. The facility also offers a third option of drawing an additional $15 million delayed-draw term loan tranche which would be the third borrowing provided within 15 business days following the completion of the previously announced merger between Hut 8 and U.S Data Mining Group (also known as US Bitcoin).
Benefits Of Loan For Hut 8
According to Hut 8 CEO Jaime Leverton, the credit facility provides the firm with additional financial flexibility. He mentioned the importance of the credit facility in