Hut 8 Increases Credit Facility Backed by Bitcoin with Coinbase to $200M

January 4, 2026

Hut 8 recently announced an expansion in its bitcoin-backed credit facility with Coinbase Credit, raising the total principal cap to $200 million and immediately drawing down the newly available funds.

The amended agreement, finalized on December 22nd, increased the borrowing capacity by $70 million from the previous limit under the third amended facility. This move allows Hut 8 to use the additional funds for general corporate purposes, securing the loan with bitcoin held by Coinbase Custody Trust Company, limiting Coinbase’s recourse to the pledged collateral.

The economic terms of the agreement, such as maturity and repayment provisions, largely remain the same following the revision. In the third quarter, Hut 8 disclosed having $130 million outstanding under the Coinbase facility at an interest rate of approximately 9%.

The interest rate is now dependent on the agreement period, with the rate previously tied to the federal funds rate with a floor of 3.25% plus an applicable margin. Under the new terms, interest accrues at the contractually defined “Base Spread” from the third amendment date through final maturity, including the newly increased fourth amendment.

Although the exact Base Spread is not provided in the filing, Hut 8’s Q3 disclosures suggest a rate in the high single digits. With an interest expense of 9% on the outstanding balance, the total borrowing cost under the fourth amended facility is estimated to be around that level, barring significant changes in benchmark rates or margin terms.

This expanded credit line bolsters Hut 8’s liquidity using its bitcoin reserves, a move that comes as miners increasingly rely on external financing to support capital expenditures in the face of narrow operating margins in bitcoin mining operations.