Canadian bitcoin mining company, Hut 8, has secured a $50 million credit facility from Coinbase Credit, a subsidiary of US-based cryptocurrency exchange, Coinbase. The facility will be used for general corporate purposes and will be backed by bitcoins held on the exchange.
Hut 8 announced the development today (Monday), noting that the agreement includes its subsidiary, Hut 8 Holdings, as a borrower.
According to the statement, the facility consists of a $15 million term loan that is expected to be funded at or after closing. Furthermore, the credit facility provides an option to obtain an additional $20 million in a deferred-draw loan tranche in a second borrowing between one to two months after closing.
Furthermore, Hut 8 has the option to access an additional deferred loan tranche of $15 million in a third borrowing within 15 business days following the completion of the previously announced merger between Hut 8 and US Data Mining Group, also known as American Bitcoin.
Hut 8 and US Bitcoin merged in February in a deal that resulted in one of the largest cryptocurrency mining companies in North America. After the merger, the new mining entity is now among the largest miners in the world by hash rate, sharing first place with companies like Marathon Digital and Riot Blockchain, according to filing with SEC.
Before Bitcoin Halving
Hut 8 CEO Jaime Leverton said the credit facility gives the miner “additional financial flexibility.”
“At the same time, this ensures that we can maintain our dynamic treasury management strategy for bitcoin halving,” she added. The Bitcoin halving is a predicted event that will halve the rewards given to miners.
Bitcoin miners have recently been affected by the cryptocurrency winter, which was marked by a drop in digital asset prices and the collapse of major cryptocurrency companies. Core Scientific, one of the miners, filed for bankruptcy last December and recently filed for a Chapter 11 plan.
Nomura’s new CEO; the Responsible Use of AI Toolkit; Read snippets of today’s news.
Canadian bitcoin mining company, Hut 8, has secured a $50 million credit facility from Coinbase Credit, a subsidiary of US-based cryptocurrency exchange, Coinbase. The facility will be used for general corporate purposes and will be backed by bitcoins held on the exchange.
Hut 8 announced the development today (Monday), noting that the agreement includes its subsidiary, Hut 8 Holdings, as a borrower.
According to the statement, the facility consists of a $15 million term loan that is expected to be funded at or after closing. Furthermore, the credit facility provides an option to obtain an additional $20 million in a deferred-draw loan tranche in a second borrowing between one to two months after closing.
Furthermore, Hut 8 has the option to access an additional deferred loan tranche of $15 million in a third borrowing within 15 business days following the completion of the previously announced merger between Hut 8 and US Data Mining Group, also known as American Bitcoin.
Hut 8 and US Bitcoin merged in February in a deal that resulted in one of the largest cryptocurrency mining companies in North America. After the merger, the new mining entity is now among the largest miners in the world by hash rate, sharing first place with companies like Marathon Digital and Riot Blockchain, according to filing with SEC.
Before Bitcoin Halving
Hut 8 CEO Jaime Leverton said the credit facility gives the miner “additional financial flexibility.”
“At the same time, this ensures that we can maintain our dynamic treasury management strategy for bitcoin halving,” she added. The Bitcoin halving is a predicted event that will halve the rewards given to miners.
Bitcoin miners have recently been affected by the cryptocurrency winter, which was marked by a drop in digital asset prices and the collapse of major cryptocurrency companies. Core Scientific, one of the miners, filed for bankruptcy last December and recently filed for a Chapter 11 plan.
Nomura’s new CEO; the Responsible Use of AI Toolkit; Read snippets of today’s news.