Hut8 reaches $200 million Bitcoin collateralized loan agreement, replacing the original Coinbase Credit financing arrangement.

Hut 8 announced that its subsidiary has entered into a $200 million, 364-day Bitcoin collateralized credit agreement with FalconX to replace its previous financing arrangement from Coinbase Credit. The new financing carries a fixed annualized interest rate of 7.0%, a 200 basis point decrease from the 9.0% of the previous Coinbase financing. Between December 2023 and March 2025, the cost of this financing was as high as 10.5%–11.5%, representing a cumulative decrease of up to 450 basis points, demonstrating Hut 8's continued progress in optimizing its debt costs. Following this refinancing, Hut 8 will have approximately 3,300 BTC uncollateralized, valued at approximately $260 million based on a market capitalization as of May 1, 2026, significantly improving its balance sheet flexibility and liquidity. The credit structure maintains key risk control provisions, including a limited recourse structure, a no-rehypothecation clause, and a fixed LTV threshold to prevent additional margin calls triggered by Bitcoin price declines. Hut8 management stated that this funding round not only reduces financing costs but also releases more uncollateralized Bitcoin assets, helping to enhance capital allocation flexibility across different market cycles; FalconX emphasized that the transaction demonstrates its continued expansion capabilities in institutional-grade Bitcoin lending solutions. (PRNewswire)