Hut 8 has expanded the borrowing capacity on its bitcoin-backed credit facility with Coinbase Credit, lifting the total principal cap to $200 million and drawing the newly available funds in full. The amended and restated agreement, executed on Dec. 22, raises the maximum loan size by $70 million from the prior cap under the third amended facility, Hut 8 said in its filing.
The loan is secured by bitcoin held with Coinbase Custody Trust Company, with Coinbase’s recourse limited to the pledged collateral. Most economic terms remain unchanged, including maturity and repayment provisions, and Hut 8 disclosed about $130 million outstanding under the Coinbase facility in its Q3, with an interest rate of about 9%.
Under the amended agreement, interest accrues at the Base Spread from the third amendment effective date through final maturity (including the fourth amendment), which implies a high single-digit rate given the reported Q3 expense. The expansion provides Hut 8 with additional liquidity backed by its bitcoin holdings as miners rely more on external financing amid thin mining margins.
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