Hut 8 Doubles Bitcoin-Backed Credit Line with Coinbase to $130M

Bitcoin mining firm Hut 8 (NASDAQ: HUT) has expanded its bitcoin-backed credit facility with Coinbase Credit, increasing the total from $65 million to $130 million. This strategic move reflects Hut 8’s efforts to strengthen its financial flexibility amid growing industry competition.

The amended credit agreement introduces a fixed interest rate of 9%, a more favorable term compared to the prior floating rate of 10.5%–11.5%. Additionally, the maturity date has been extended to July 16, 2026. The facility remains secured by Hut 8’s bitcoin holdings, but with a notable safeguard: Coinbase is prohibited from rehypothecating the collateral, significantly reducing counterparty risk. The agreement also includes a limited recourse clause, further protecting Hut 8’s assets.

“This facility has been an efficient source of capital on our balance sheet,” said Sean Glennan, Hut 8’s CFO. “Improved terms and enhanced protections demonstrate our commitment to disciplined risk management and capital efficiency.”

The additional $65 million in funding will be used to accelerate Hut 8’s expansion plans. The company currently manages over 1,000 megawatts (MW) of mining and data infrastructure across North America, positioning itself as a major player in the crypto mining sector.

Following the announcement, Hut 8 shares surged 7.7%, outperforming the broader bitcoin mining sector, which also saw gains amid renewed investor optimism.

With this latest move, Hut 8 signals its intent to scale operations and reinforce its balance sheet while leveraging bitcoin’s asset value. The strengthened partnership with Coinbase Credit underscores growing institutional support for crypto-backed financing.