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

Hut 8 Mining Granted Credit Facility from Coinbase Subsidiary

Hut 8 Mining, a Canadian Bitcoin (BTC) mining firm, has been granted a credit facility from a subsidiary of the U.S.-based cryptocurrency exchange Coinbase.

On June 26, Hut 8 made an official announcement that it had entered into a credit agreement with Coinbase Credit for the amount of $50 million. Hut 8 Holdings, the subsidiary of Hut 8, acted as the borrower in the credit facility.

As per the revelation, the loan funds will be utilized for general corporate purposes. The credit line provides a $15 million term loan that is expected to be disbursed at or after the closing.

The loan allows for the possibility of securing an additional $20 million delayed-draw term loan tranche in a second borrowing within one to two months of closing. Additionally, the facility offers a third choice of obtaining an extra $15 million delayed-draw term loan tranche.

The announcement states that the final installment of the loan will be the third borrowing within 15 business days after the merger between Hut 8 and U.S. Data Mining Group, which is also known as US Bitcoin, has been completed.

Hut 8 CEO Jaime Leverton highlighted the significance of the credit facility in the context of the upcoming Bitcoin halving, which is due to reduce the BTC miner block reward from 6.25 BTC to 3.125 BTC. He underlined that the credit facility gives the firm extra financial freedom.

Leverton proclaimed.

Hut 8 Prepares for Bitcoin Halving and Expansion of Business

Hut 8 has become a significant Bitcoin miner that kept their BTC even with the large economic difficulties that the Bitcoin mining sector was facing. While some mining companies such as Argo Blockchain had to sell off parts of their BTC during the bear market of 2022, Hut 8 stayed devoted to their “long-term HODL approach.”

Core Scientific, a Bitcoin miner, has filed its Chapter 11 plan.

As of March 31st, 2023, the Canadian firm Hut 8 had a total of 9,133 self-mined Bitcoin held in custody, as stated in their Q1 2023 financial update. Their CEO also noted that, prior to the halving, they would be concentrating on increasing their Bitcoin stack and expanding their High Performance Computing business, as well as investigating prospects in the rapidly advancing artificial intelligence industry.

Magazine: Miami in 2023 grapples with the phenomenon of ‘shitcoins on Bitcoin’.

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