Hut 8 receives a $50m loan from Coinbase’s subsidiary

Major Canadian crypto miner Hut 8 Mining inked a $50 million credit facility agreement with Coinbase Credit, to provide the latter with robust financial flexibility, liquidity, and also fund its business operations.

Hut 8, in a press release on June 26, stated that the credit facility, which will mature 364 after the initial borrowing, comprises a term loan of $15 million, which, the announcement said, “is expected to be funded at or shortly following closing.” 

There is also an additional $20 million delayed-draw term between one and two months after closing and a third borrowing of $15 million within 15 working days after the completion of the merger with bitcoin mining company US Bitcoin Corp., or USBTC.

Hut 8 and USBTC entered a “merger of equals” deal, which will see the creation of a new entity called Hut 8 Corp. The company domiciled in the United States will have access to approximately megawatts of energy. Also, upon completion of the transaction, both Hut 8 and USBT shareholders will have equal ownership of the new company’s stock. 

Regarding the latest development, Hut 8 CEO Jamie Leverton said the credit facility would boost the company’s financial flexibility. 

“This credit facility gives us additional financial flexibility. At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”

Jamie Leverton, Hut 8 CEO

Hut 8 mined 147 BTC in May and sold 179 BTC in the same month, while the company has 9,233 bitcoins (worth nearly $280 million at the current price of BTC) in its reserves as of May 31, 2023.