Coinbase Credit lends Hut 8 $50M to support Bitcoin treasury

Coinbase Credit has provided a $50 million credit facility to Hut 8 Mining, a Canadian Bitcoin mining company. The loan will be utilized by the borrower’s subsidiary, Hut 8 Holdings, for general corporate purposes. This involves a $15 million term loan that is anticipated to be funded following closing, with an option for an additional $20 million delayed-draw term loan tranche in a second borrowing after one or two months and another option of drawing an additional $15 million delayed-draw term loan tranche.

According to Hut 8 CEO Jaime Leverton, the loan provides the firm with additional financial flexibility as it approaches the upcoming Bitcoin halving. Hut 8 has maintained a “long-standing HODL strategy,” holding on to its Bitcoin while other mining firms have been forced to sell portions of their holdings amid the bear market of 2022.

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