Hut 8 has increased the borrowing capacity on its bitcoin-backed credit facility with Coinbase Credit, lifting the total principal cap to $200 million and drawing the newly available funds in full. The company’s filing states the amended and restated agreement was executed on Dec. 22 and raises the maximum loan size by $70 million from the prior cap under the third amended facility.
Overview of the Expanded Credit Facility
The upsized facility raises Hut 8’s principal cap to $200 million, with the additional borrowing taken immediately and earmarked for general corporate purposes. According to the filing, the transaction was implemented through an amendment and restatement of the existing facility rather than a wholly new loan arrangement.
Key Terms of the Agreement
The loan remains secured by bitcoin held with Coinbase Custody Trust Company, and Coinbase’s recourse is limited to the pledged collateral. The revised agreement leaves most economic terms unchanged, including maturity and repayment provisions, while increasing the available principal under the facility.
Interest Rate Details
In its third-quarter Form 10-Q, Hut 8 reported $130 million outstanding under the Coinbase facility, carrying an interest rate of about 9%. Under the amended credit agreement the applicable interest rate depends on the amendment period; prior to the third amendment the rate was tied to the federal funds rate with a floor of 3.25% plus an applicable margin.
The filing notes that from the third amendment effective date through final maturity — including the newly upsized fourth amendment — interest accrues at the contractually defined "Base Spread." The Base Spread is not restated in the filing, and Hut 8’s Q3 disclosures imply a rate in the high single digits based on reported interest expense.
Context and implications
The expanded credit line gives Hut 8 additional liquidity backed by its bitcoin holdings at Coinbase Custody, which the company says provides flexibility for corporate uses. Miners have increasingly leaned on external financing to fund capital spending as operating margins in mining remain thin, and this amendment is one example of that financing activity.
For additional background on Hut 8’s recent commercial moves, see reporting on the company’s AI data‑center deal and its 15‑year lease. Those stories provide context for the company’s broader strategy without changing the facts of the Coinbase credit amendment.
Why this matters
If you operate between one and a thousand mining devices in Russia, this amendment does not alter your hardware, electricity costs, or the machines you run. The loan is collateralized by Hut 8’s bitcoin holdings and was drawn for corporate purposes, so there is no direct operational change reported for external miners in the filing.
That said, the move is relevant as an example of how large public miners secure liquidity using bitcoin as collateral. For miners who follow market financing trends, the filing reinforces that credit secured by on‑exchange custody is an available option for institutional miners, while the specific terms remain company‑level facts rather than sector‑wide guarantees.
What to do?
- Check your own financing and custody arrangements: if you use third‑party loans or custodial services, review contract terms and recourse provisions so you understand collateral risks.
- Track borrowing costs that affect the sector: monitor published interest rates or your lender’s terms, since facility pricing is a direct driver of financing expense for miners.
- Keep records of operational costs and margins: accurate cost tracking helps decide whether outside financing is needed and what scale is affordable for your setup.
