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

Bitcoin mining firm Hut 8 (NASDAQ: HUT) has amended and expanded its credit facility with Coinbase, extending the maturity date by one year and doubling the borrowing capacity to $130 million.

According to an SEC filing published Monday, the revised agreement replaces the prior credit arrangement, which was set to mature on June 16, 2025, with an annual interest rate of 10.5%. As of March 31, Hut 8 had $65 million outstanding under that facility.

Under the new terms, the interest rate has been reduced to 9.0%, and Coinbase’s right to charge an early termination fee has been removed. The credit line now permits up to $65 million in additional borrowing, bringing the total to $130 million. The maturity has been extended to June 16, 2026.

The loan continues to be secured by Bitcoin held with Coinbase Custody Trust Company. Coinbase’s recourse is limited to the pledged BTC, and no custodial fees will be charged on the collateral, the filing noted.

Hut 8 said the expanded facility may be used for general corporate purposes. The amendment marks the third revision to the original credit agreement since it was first signed in June 2023.

The move comes as Bitcoin miners face tighter post-halving margins and increasingly turn to flexible financing to weather ongoing market volatility.

Earlier this month, IREN and Bitdeer (NASDAQ: BTDR) raised over $800 million through convertible bond issuances to support expansion initiatives beyond proprietary Bitcoin mining.

Despite a modest BTC price rebound on Monday, the network’s hashprice remains under $55/PH/s, though an upcoming mining difficulty adjustment—projected to decline by more than 8%—could provide short-term relief.