Hut 8 Corp. secured a $200 million, 364-day bitcoin-backed credit facility with Falconx this week, replacing its prior agreement with Coinbase Credit. The new deal at 7.0% interest released 3,300 bitcoin that had been pledged under the old facility, valued at $260 million as of May 1.
The Lender Switch
Hut 8 ditched Coinbase Credit without comment. The change likely reflects the mining sector's scramble for stable financing as crypto markets swing. This isn't the first lender shuffle for Hut 8 this year. The company's previous facility terminated immediately upon signing the Falconx deal.
Unlocked Bitcoin
The 3,300 freed bitcoins now sit unencumbered on Hut 8's balance sheet. That $260 million worth of collateral as of May 1 gives the miner immediate flexibility. They could deploy it for new rigs or sell during market spikes. No details emerged about near-term plans for the coins.
What Comes Next
The 364-day facility expires in May 2027. Hut 8 must renew or secure replacement financing before then. Market turbulence could force another scramble for lenders by year-end. The firm won't disclose whether it sought better terms or simply wanted fresh collateral options.
