On the 24th (currently 2016), the company announced that it had doubled its credit loan limit with the US Credit Group from $65 million to $130 million.
The revised agreement includes improved terms such as a fixed interest rate of 9%, stronger collateral protection and extended loan maturities, which will help improve Hut 8's capital structure, according to The Block.
The extended loan agreement extends the maturity date to July 2026 and allows Hut8 to raise an additional $65 million without dilution.
"This investment will enable us to explore near-term growth opportunities in our bitcoin mining and high performance computing (HPC) business segments."
Previously, a variable interest rate was applied, but with this contract revision, a fixed interest rate of 9% will be applied.
This is significantly lower than the 10.5-11.5% range that was applied in the previous period. In addition, the company has introduced a limited liability structure while maintaining the no-re-pledge clause for collateralized Bitcoin, and has implemented a new 10.5-11.5% range that was applied in the previous period.
This reduced the burden on Hut 8 at the time. Hut 8 received a $50 million loan from Coinbase Credit in 2023.
Hut8 CEO Asher Genuine
"We are strategically collaborating with Coinbase to provide a credit line to address a range of growth opportunities," said Genoot.
It has doubled and conditions have improved significantly."
2025/06/25 15:47 KST
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