Bitcoin mining company HUT 8 (Hytte) said Tuesday that it expanded its Bitcoin-backed credit facility with Coinbase Credit to $ 130 million, up from $ 65 million.
The changed agreement also comes with a fixed rate of 9% against the previous liquid clean of between 10.5% and 11.5%. The maturity of the facility was expanded to July 16, 2026.
“This facility has been an effective source of capital in our balance,” said Sean Glennan, Hut 8’s CFO. “The combination of improved conditions and safety and borrower protection reflects our belief that risk discipline is important to build an elastic and efficient capital structure.”
Unlike many traditional loans, this is secured by Bitcoin Holdings. However, Coinbase is limited to rehypotize collateral, a measure that limits the counterparty risk. The credit line also includes a limited application clause, which further shields cabin 8.
The company said it will spend the additional $ 65 million in capital to pursue expansion efforts.
Hutsing shares are higher by 7.7% on Tuesday along with winnings for most of the Bitcoin mining sector.
HUT 8 operates a network of mining and data infrastructure assets throughout North America with over 1,000 megawatts (MW) energy capacity under management.
