Leading North American cryptocurrency miner, Hut 8, has recently announced a significant milestone in its financial journey by securing a credit facility worth $50 million. The facility, provided by Coinbase Credit, a prominent lender in the crypto space, will empower Hut 8 with increased financial flexibility, enabling the company to pursue its strategic objectives and bolster its Bitcoin treasury management strategy.
The credit facility consists of multiple tranches, with an initial $15 million term loan. Following this, an additional $20 million delayed-draw term loan tranche will be made available to Hut 8 within a timeframe of one to two months after the closing of the initial loan.
Moreover, Hut 8 will have access to an additional $15 million delayed-draw term loan tranche in a third borrowing, expected to take place within 15 business days following the completion of the highly-anticipated merger between Hut 8 and U.S. Data Mining Group. This merger aims to establish a new entity named “New Hut,” domiciled in the United States.
By leveraging this credit facility, Hut 8 anticipates remarkable growth and expansion opportunities. The combined entity resulting from the merger is projected to benefit from an impressive 825 MW of gross energy across all six sites, encompassing self-mining, hosting, and managed infrastructure operations.
Expressing her enthusiasm, Hut 8’s CEO, Jaime Leverton, stated, “This credit facility grants us valuable financial flexibility while ensuring the continuity of our dynamic Bitcoin treasury management strategy, particularly in light of the upcoming halving event.”
Hut 8’s collaboration with Coinbase Credit is poised to accelerate the company’s progress in the dynamic and ever-evolving crypto mining industry. With a robust financial foundation and an array of growth prospects, Hut 8 is well-positioned to thrive in the cryptocurrency ecosystem, contributing to the ongoing digital revolution.
Hut 8 Bolsters Bitcoin Reserves by 65% Amidst Revenue Dip
In a noteworthy turn of events, the prominent Canadian crypto firm, has showcased its unwavering commitment to Bitcoin by significantly boosting its holdings despite facing a decline in revenue. The recently unveiled financial results for both the fourth quarter and the entire year that concluded on December 31st, 2022, shed light on the company’s strategic maneuvers and provide valuable insights into the state of the crypto market.
During the specified period, the mining firm experienced a substantial decrease in revenue, with a staggering plunge of over 13%. However, amidst this challenging landscape, the firm demonstrated its unwavering faith in the leading cryptocurrency. The company impressively managed to increase its Bitcoin holdings by a remarkable 65%, effectively strengthening its position in the market.
This strategic move by Hut 8 highlights the company’s confidence in Bitcoin’s long-term potential and its dedication to harnessing the opportunities presented by the volatile crypto landscape. Despite the downturn in revenue, the firm’s proactive approach in accumulating more Bitcoin reflects a calculated bet on the digital asset’s future value and resilience.