Hut 8 nabs $50M Coinbase credit facility ahead of merger with US Bitcoin Hut 8 nabs $50M Coinbase credit facility ahead of merger with US Bitcoin
CEO Jaime Leverton says the credit facility provides the firm with "additional financial flexibility."
1 min read
Updated: Jun. 27, 2023 at 5:06 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin (BTC) miner Hut 8 said on June 26 that its subsidiary, Hut 8 Holdings, entered into a $50 million credit facility agreement with Coinbase Credit for general corporate purposes.
Hut 8 stated that the credit facility offers a $15 million term loan that would be funded at or shortly after closing. The facility also allows the firm to draw a delayed-draw term loan of $20 million between one and two months following closing,
Additionally, the Bitcoin miner can borrow $15 million through a delayed-draw term loan tranche within 15 business days after the completion of its merger with U.S. Data Mining Group, which does business as US Bitcoin Corp.
Hut 8 said:
“All amounts borrowed under the Credit Facility will bear interest at a rate equal to (a) the greater of (i) the federal funds rate on the date of the applicable borrowing, and (ii) 3.25%, plus (b) 5.0%.”
The miner stated that the credit facility is secured by its interest in an unspecified amount of Bitcoin held in Coinbase Custody, adding that the loan will mature 364 days after the date of the first borrowing.
Speaking about the loan, Hut 8 CEO Jaime Leverton said the credit facility provides the firm with an “additional financial flexibility,” adding that:
“At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”
Meanwhile, according to Nasdaq data, the company stocks did not react positively to news of the credit facility, slightly declining by 0.51% to $2.915.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Hut 8
Hut 8 is a digital asset miner with two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, Canada.
US Bitcoin Corp
US Bitcoin Corp, also known as US BTC, specializes in constructing and managing state-of-the-art data centers dedicated to safeguarding the Bitcoin network.