According to PR Newswire, Hut 8 Corp. (Nasdaq/TSX: HUT) announced that its subsidiary has entered into a $200 million, 364-day bitcoin-backed credit facility with FalconX, replacing its prior arrangement with Coinbase Credit. The new agreement carries a fixed interest rate of 7.0%, a 200-basis-point reduction from the previous 9.0% rate under the Coinbase agreement, and represents a cumulative decline of up to 450 basis points compared to the historical rate range of 10.5%–11.5% from late 2023 to early 2025. This refinancing simultaneously releases approximately 3,300 bitcoins (valued at approximately $260 million as of May 1), freeing them from collateral constraints and enhancing the company’s balance sheet liquidity and financial flexibility. The new agreement retains key protective structures, including limited recourse terms, a prohibition on bitcoin re-collateralization, and a fixed loan-to-value ratio threshold.
Hut 8 Replaces Coinbase Financing with $200M FalconX Loan, Reduces Debt Cost by 200 BPS
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Summary
Hut 8 Corp. (Nasdaq/TSX: HUT) announced a $200 million, 364-day secured bitcoin credit facility with FalconX, replacing its previous arrangement with Coinbase Credit. The new facility features a fixed interest rate of 7.0%, a 200 basis point reduction from the prior rate of 9.0%. The refinancing has released approximately 3,300 BTC in collateral, valued at $260 million as of May 1, enhancing the miner’s liquidity and financial flexibility.
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