Hut 8 increases credit facility to $200 million with Coinbase

Hut 8 Mining Corp. (NASDAQ: HUT) entered into an amended credit agreement with Coinbase Credit Inc. on December 22, increasing its borrowing capacity by $70 million to a total of $200 million, according to a company statement.

The fourth amended and restated credit agreement expands the existing facility that was originally established in June 2023 and has been modified several times since then. Hut 8 Mining Corp., a British Columbia corporation and wholly owned subsidiary of Hut 8 Corp., borrowed the full additional $70 million on December 22.

The credit facility maintains the same interest rate, maturity date, payment terms, and acceleration provisions as the previous agreement. The company plans to use the funds for general corporate purposes.

The borrower's obligations under the credit agreement are secured by Bitcoin holdings in the custody of Coinbase Custody Trust Company. Coinbase's recourse is limited to the Bitcoin collateral held in custody. Coinbase Custody will not charge custodial fees for the Bitcoin collateral securing the facility.

Coinbase Credit Inc. serves as the lender, collateral agent, and administrative agent under the agreement. The credit facility represents an expansion of the financial relationship between Hut 8 and Coinbase that began in 2023.

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