Coinbase extends $50m credit line to Hut 8

The mining company Hut 8 Mining has agreed with Coinbase to open a $50 million line of credit secured by bitcoins.

This morning, we announced that we’ve entered into a US$50 million credit facility, which will give us added financial flexibility and ensure that we can maintain our dynamic Bitcoin treasury management strategy. Full release: https://t.co/lGRSYy4jwP.

— Hut 8 (@Hut8Mining) June 26, 2023

The company plans to allocate the funds to general corporate expenses.

“The credit will give us additional financial flexibility. At the same time, the line will ensure that we can maintain our dynamic Bitcoin treasury management strategy during the halving,” said Hut 8 CEO Jamie Leverton.

Under the agreement, Coinbase will provide a $15 million term loan. The mining company can access an additional $20 million within two months. A further $15 million would become available 15 days after the completion of the previously announced merger with US Bitcoin.

The maturity of all tranches will be 364 days at an annual rate of 8.25%. The loans will be secured by Hut 8’s bitcoins held in Coinbase Custody.     

As of 30 April, the company’s cryptocurrency reserves stood at 9,265 BTC — about $282.3 million at the time of writing.

Earlier, Hut 8 said it had deployed about 6,400 ASIC miners in Texas from the problematic data centre in North Bay, Ontario. 

⛏️It’s time to mine! We’ll be firing up ~6,400 machines in Texas, boosting our installed capacity by 600 PH/s and bringing our total installed hashrate to ~3.2 EH/s ? https://t.co/6rOxmggrQz #BitcoinMining

— Hut 8 (@Hut8Mining) June 22, 2023

As a result, the company’s operating hashrate rose to 3.2 EH/s.

In June, the aggregate hash rate of the world’s leading cryptocurrency reached a peak at around 394 EH/s. The mining difficulty rose to a record value at 52.35 TH.