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Hut 8 Secures $50 Million Credit Facility from Coinbase Credit

Hut 8, a prominent cryptocurrency miner, secures a $50 million credit facility agreement with Coinbase Credit, bolstering financial flexibility and Bitcoin treasury management.

Key Points

  • Hut 8 secures a $50 million credit facility agreement with Coinbase Credit, offering financial flexibility and aiding Bitcoin treasury management.
  • The credit facility includes multiple loan tranches, with $15 million initially and additional tranches upon completion of the anticipated merger.
  • The merger aims to create “New Hut” with access to 825 MW of energy across six sites, enabling various mining operations.
  • Hut 8 reports a 65% increase in Bitcoin holdings despite a revenue plunge, highlighting its commitment to accumulating digital assets.


Hut 8, a prominent North American cryptocurrency miner, has recently announced a credit facility agreement with Coinbase Credit, with the lender providing a loan of $50 million. The funds from this credit facility will be utilized for general corporate purposes and will offer Hut 8 increased financial flexibility. Moreover, this will aid the company in maintaining a dynamic Bitcoin treasury management strategy.

Loan Tranches and Merger Benefits

The credit facility encompasses multiple loan tranches. Initially, the agreement includes a $15 million term loan. This is then followed by an additional $20 million delayed-draw term loan tranche within one to two months following the closing. Furthermore, there is another $15 million delayed-draw term loan tranche available, which can be obtained within 15 business days after the completion of the anticipated merger between Hut 8 and U.S. Data Mining Group.

This merger aims to create a new entity called “New Hut,” based in the United States. Upon completion, New Hut will have access to approximately 825 MW of gross energy across all six sites, enabling self-mining, hosting, and managed infrastructure operations, as previously disclosed by Hut 8.

CEO’s Comment on the Credit Facility

Expressing her thoughts on the credit facility, Hut 8’s CEO, Jaime Leverton, highlighted its significance for the company’s financial strategy in the upcoming halving. She stated, “This credit facility gives us additional financial flexibility. At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”

Financial Performance and Bitcoin Holdings

According to its financial results for the year and quarter ending on December 31, 2022, Hut 8 reported a significant increase of 65% in its Bitcoin holdings. However, during the same period, the company experienced a revenue plunge of over 13%. This indicates Hut 8’s commitment to accumulating more Bitcoin despite facing revenue challenges.

This strategic credit facility agreement with Coinbase Credit is expected to further solidify Hut 8’s position in the crypto industry. It will provide the company with the financial resources needed to navigate market fluctuations and capitalize on opportunities.