Coinbase Offers $50M Credit Facility to Crypto Miner Hut 8

Hut 8 announced entering into a $50 million credit facility with Coinbase Credit as the lender. In a statement, the North American cryptocurrency miner revealed that the loan proceeds will be used for general corporate purposes while providing them with additional financial flexibility and helping them maintain a dynamic strategy for managing bitcoin treasury.

• Initially, the credit facility offers a term loan of $15 million, followed by a deferred drawing loan tranche of $20 million in a second borrowing 1-2 months after closing.
• The transaction also includes another $15 million deferred-draw loan tranche in a third borrowing within 15 business days following the completion of the previously announced merger between Hut 8 and US Data Mining Group to create a US-based entity called “New Hut.” “
• Previously, the company had male After the merger, the new entity is expected to have approximately 825 megawatts of total power across all six sites with self-mining operations, hosting and managed infrastructure.
• Hut 8’s CEO Jaime Leverton commentAnd

“This credit facility gives us additional financial flexibility. At the same time, it ensures that we can maintain our dynamic treasury management strategy for Bitcoin halving.”

• Hut 8’s financial results for the year and quarter ended December 31, 2022 reveal that the Canadian company has increased its Bitcoin holdings by 65% ​​even as its revenue declined by more than 13% over the period.