Hut 8 reaches a $200 million Bitcoin collateral loan agreement, replacing the original Coinbase Credit financing arrangement

Odaily Planet Daily News: Hut 8 announced that its subsidiary has reached a $200 million Bitcoin collateralized loan agreement with FalconX, with a term of 364 days, to replace previous financing arrangements from Coinbase Credit. The new financing has a fixed annual interest rate of 7.0%, down 200 basis points from the previous Coinbase financing at 9.0%; during December 2023 to March 2025, the financing cost once reached as high as 10.5%–11.5%, with a maximum total reduction of 450 basis points, demonstrating ongoing progress in optimizing debt costs.

After this refinancing, Hut 8 has approximately 3,300 BTC converted to non-collateralized status, valued at about $260 million as of May 1, 2026, significantly enhancing its balance sheet flexibility and liquidity space. At the same time, the loan structure maintains key risk control clauses, including a limited recourse structure, no-rehypothecation clause, and a fixed LTV threshold design, to prevent additional margin calls triggered by Bitcoin price declines.

Hut 8 management stated that this financing not only reduces borrowing costs but also releases more uncollateralized Bitcoin assets, helping to enhance capital allocation flexibility across different market cycles; FalconX emphasized that the deal reflects its ongoing expansion capabilities in institutional Bitcoin lending solutions. (PRNewswire)