Hut 8 and FalconX restructure credit, releasing 3,300 Bitcoins

CryptoWorld News reports that Hut 8 (Hut) has secured a new $200 million credit line after restructuring with FalconX, replacing its existing Coinbase credit arrangement. This restructuring reduced Hut 8’s fixed interest rate from 9% to 7%, an improvement of 200 basis points. It also releases approximately 3,300 Bitcoins that were previously used as collateral; based on current prices, this is equivalent to about $260 million (about 2.6 million hundred million yuan), giving Hut 8 greater capital flexibility. Hut 8’s Chief Financial Officer Sean Glennan said the restructuring strengthens the company’s balance sheet, lowers debt costs, and increases its Bitcoin holdings that are not restricted by collateral covenants—bringing additional liquidity to support business growth.

Hut 8 also issued $3.25 billion in senior secured notes last week to fund the construction of its 245 MW data center in St. Francisville, Louisiana. The project has signed a 15-year, $7 billion lease with AI infrastructure company Fluidstack, and if all renewal options are exercised, the total potential value could reach $17.7 billion.