Hut 8 Refinances Bitcoin-Backed Credit Facility with $200 Million FalconX Deal

Hut 8 (NASDAQ: HUT) has replaced its Bitcoin-backed credit facility with FalconX in a refinancing deal that lowers borrowing costs and frees up thousands of Bitcoin previously tied up as collateral, underscoring the company’s broader push to strengthen liquidity as it expands into AI and high-performance computing infrastructure.

The company said Monday it entered into a new $200 million, 364-day Bitcoin-backed facility with FalconX carrying a fixed 7% interest rate, replacing its prior loan agreement with Coinbase. The new rate represents a 200-basis-point reduction from the 9% rate on the previous Coinbase facility and marks a cumulative improvement of as much as 450 basis points from the double-digit borrowing costs Hut 8 paid in earlier iterations of the loan.

The refinancing also released about 3,300 BTC from collateral requirements, equivalent to roughly $260 million based on Bitcoin prices as of May 1, according to the company. Hut 8 said the move increases the amount of unencumbered Bitcoin on its balance sheet, giving it greater liquidity and flexibility for future investments.

The structure of the FalconX facility also removes a feature that had become increasingly burdensome for some miners during Bitcoin price declines: an escalating collateral requirement tied to loan-to-value thresholds.

Under Hut 8’s previous Coinbase agreement, the company had periodically posted additional Bitcoin as collateral when Bitcoin prices weakened. Regulatory filings showed Hut 8 increased pledged collateral from about 4,533 BTC at the end of 2025 to roughly 5,802 BTC by March 31, 2026, as the value of Bitcoin fell during the quarter and triggered stricter loan-to-value requirements.

The new FalconX agreement, by contrast, uses fixed loan-to-value thresholds without a ratchet mechanism tied to Bitcoin price declines. Hut 8 also said the facility includes a no-rehypothecation covenant preventing pledged Bitcoin from being reused by the lender, while maintaining a limited-recourse structure in which claims are limited to the pledged collateral.

The refinancing comes as Bitcoin miners increasingly rely on treasury management and capital structure optimization to navigate a prolonged downturn in mining economics while simultaneously funding AI infrastructure ambitions.

Hut 8 has been among the most aggressive miners pursuing large-scale AI and HPC development. In December, the company signed a 15-year, $7 billion lease agreement with AI cloud firm Fluidstack tied to 245 megawatts of capacity at its River Bend campus in Louisiana, one of the sector’s largest announced AI infrastructure deals.

The company has also been reshaping its financing stack to support that transition. Last month, Hut 8 disclosed plans for a proposed $3.248 billion senior secured notes offering due 2042 aimed at financing development at River Bend, highlighting the growing convergence between Bitcoin mining operators and long-duration infrastructure financing models more commonly associated with data centers and utilities.