Overview
- Hut 8 disclosed Monday it replaced its Coinbase Credit line with a 364-day, $200 million Bitcoin-backed facility from FalconX at a fixed 7% rate, down from 9%.
- The refinancing unencumbers about 3,300 BTC valued near $260 million, increasing cash and coin the company can use without lender covenants.
- The deal keeps borrower safeguards that limit recourse to pledged Bitcoin, bar rehypothecation of that collateral, and fix loan-to-value thresholds without a price-drop ratchet.
- Hut 8 shares rose roughly 1.5% after the announcement as coverage noted improving terms for miners in a deepening market for institutional Bitcoin-backed credit.
- The short term means another refinancing decision within a year, and the added flexibility supports Hut 8’s U.S. buildout for AI and data centers, including its River Bend project and recent $3.25 billion notes filing.