- The credit facility includes a $15 million term loan upon closing.
- After 364 days from the date of the first borrowing, the Credit Facility will expire.
Crypto miner Hut 8 said it has secured a $50 million credit facility with Coinbase Credit. The North American crypto miner said in a statement that it plans to utilize the loan funds for “general corporate purposes.” Thus, giving it more leeway financially and allowing it to better manage its Bitcoin holdings.
The credit facility includes a $15 million term loan upon closing. With an additional $20 million available in a second borrowing one to two months after the deal closes on a delayed-draw term loan tranche.
Additional Financial Flexibility
An additional $15 million delayed-draw term loan tranche will be borrowed in a third round of financing within 15 business days after the conclusion of the previously announced merger between Hut 8 and U.S. Data Mining Group to form a new company based in the United States, dubbed “New Hut.”
The firm has said that the combined organization would have access to about 825 MW of gross energy across all six locations. This would be for self-mining, hosting, and managed infrastructure operations when the merger is finalized.
Jaime Leverton, CEO of Hut 8, said:
In spite of a 13% drop in revenue. The Canadian company Hut 8 reported a 65% growth in its Bitcoin holdings for the year and quarter ending December 31st, 2022.
After 364 days from the date of the first borrowing, the Credit Facility will expire. The Company guarantees the Borrower’s payment of any amounts due under the Credit Facility. Which are secured by the Borrower’s interest in a few Bitcoin held by Coinbase Custody Trust Company, LLC.
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