Hut 8 Mining Corp., one of North America’s largest, innovation-focused digital asset mining pioneers, and high performance computing infrastructure provider, announced today that, together with its subsidiary, Hut 8 Holdings Inc. (the “Borrower”), it has entered into a USD 50 million credit facility (the “Credit Facility”) with Coinbase Credit, Inc., as lender. The loan proceeds will be used for general corporate purposes.
“This credit facility gives us additional financial flexibility,” said CEO Jaime Leverton. “At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”
The Credit Facility provides a US$15 million term loan which is expected to be funded at or shortly following closing. The Credit Facility also provides an option of drawing an additional USD 20 million delayed-draw term loan tranche in a second borrowing between one and two months following closing, as well as an option of further drawing an additional USD 15 million delayed-draw term loan tranche in a third borrowing within 15 business days following completion of the previously announced merger between Hut 8 and U.S. Data Mining Group, Inc. (d/b/a “US Bitcoin Corp.”), in each case subject to maintaining a specified loan-to-value ratio.
All amounts borrowed under the Credit Facility will bear interest at a rate equal to (a) the greater of (i) the federal funds rate on the date of the applicable borrowing, and (ii) 3.25%, plus (b) 5.0%. The Credit Facility matures 364 days after the date of the first borrowing. The obligations under the Credit Facility are secured by the Borrower’s interest in certain Bitcoin held in the custody of Coinbase Custody Trust Company, LLC and are guaranteed by the Company.
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