Hut 8 repays nearly $38 million loan to fund AI expansion

Bitcoin mining company Hut 8 has announced that it has acquired Anchorage Digital.
Digital) through a stock conversion to repay the remaining loan of approximately $38 million (approximately 5.4 billion yen).
Anchorage Digital converted the loan into common stock at $16.395 per share, a 51% premium over the volume-weighted average price over the 20-day trading period ending Sept. 26.
Hut8 restructured the loan in February 2023, using 21,000 mining machines as collateral. It now has about $290 million in debt, of which 150 million is in debt.
The $10 million is a convertible bond signed with Coatue Management for the expansion of AI computing.
Hut8 CEO Asher Genoot described Anchorage's digital loan repayments as "enhanced and
With a stronger financial statement and reduced leverage, we believe we are in a better position to further develop discussions with potential partners and execute on the development of our next generation mining and AI data centers.
"We are looking forward to expanding our AI capabilities," said Hut8. On the 26th of last month, Hut8 launched a GPU-as-a-Service (GPUaaS) program in cooperation with AdvizeX.
The company launched a Hewlett Packard Enterprise
The rise of AI and the Bitcoin halving have had a major impact on the cryptocurrency mining industry.
With mining power shifting to AI and high-performance computing, Hut8 is looking to improve its debt-to-capital ratio, lower its debt service costs and boost its creditworthiness, among other things, to help drive the industry’s growth.
We are following the trend.