Hut 8 Pledges 4,533 Bitcoin for $200M Coinbase Loan as BTC Slides
Hut 8 (NASDAQ: HUT)’s bitcoin-backed borrowing is facing fresh collateral pressure after bitcoin’s slide this year, as the company moves to bolster liquidity while it pivots toward AI infrastructure.
In its annual filing on Wednesday, Hut 8 disclosed $396.6 million of “digital assets pledged as collateral” at Dec. 31, 2025—equivalent to about 4,533 BTC using the company’s year-end fair value mark of $87,498 per bitcoin. The pledged assets are primarily used to secure credit facilities such as its amended loan with Coinbase.
On Dec. 22, Hut 8 entered into a fourth amended and restated credit agreement with Coinbase that increased the facility’s size to $200 million, and the company drew the additional $70 million in full the same day. The company said the facility is secured by bitcoin held at Coinbase Custody, with Coinbase’s recourse limited to that collateral.
But bitcoin has since fallen to about $68,259, down from Hut 8’s year-end mark, reducing the implied value of 4,533 BTC to roughly $309 million. If the full $200 million remains outstanding, that would imply a loan-to-value ratio of about 65%—above the 60% ceiling described in Hut 8’s disclosures of the facility’s collateral mechanics—suggesting the company may have had to add collateral, reduce borrowings, or otherwise rebalance since year-end.
The Coinbase facility is only one claim on Hut 8’s bitcoin stack. The company also reported bitcoin pledged to Bitmain tied to a purchase of 17,280 liquid-cooled ASIC miners, alongside unencumbered bitcoin held in custody.
Alongside bitcoin-backed borrowing, Hut 8 has leaned on several other liquidity levers as it ramps its AI data center ambitions.
In its 10-K, Hut 8 said it established a $1.0 billion at-the-market equity program in August 2025, replacing a prior $500 million program. It reported issuing 4.0 million shares under the 2025 ATM for gross proceeds of $183.4 million at a weighted average price of $45.62 by year-end, after raising $299.4 million under the earlier program before it was terminated.
The company also pointed to expanded revolving credit capacity beyond Coinbase, saying it had access to a $200 million facility with Two Prime and did not draw on it during 2025.
On the asset-rotation front, Hut 8 said it closed the sale of its 310-megawatt portfolio of four natural gas-fired power plants in Ontario to TransAlta on Feb. 2, 2026, and indicated it intends to redeploy capital for general corporate purposes, including executing its data center development pipeline.
Hut 8 is also leaning on project-level financing structures as it shifts toward AI infrastructure. In December 2025, the company signed a 15-year, 245 MW IT-capacity lease at its River Bend campus with Fluidstack, with Google providing a financial backstop for the base term, and Hut 8 said it expected up to 85% loan-to-cost project financing to be underwritten by JPMorgan and Goldman Sachs.
The liquidity push comes as Hut 8 reported sharply higher revenue but large losses tied to digital-asset fair-value moves. The company posted $235.1 million in 2025 revenue, up from $162.4 million in 2024, while reporting a GAAP net loss of $248.0 million for the year and a fourth-quarter net loss of $301.8 million, driven in part by losses on digital assets.
