Hut 8 Secures Whopping $130M Bitcoin-Backed Credit Line from Coinbase – Doubling Down on Crypto Liquidity

Bitcoin miners just leveled up their financial firepower. Hut 8 Mining Corp. just inked a deal to double its existing credit facility with Coinbase—now packing a $130 million war chest backed by its BTC holdings.

Why it matters: When traditional banks still treat crypto like radioactive waste, miners are rewriting the rules of corporate finance—using their stack as collateral while hodling through cycles.

The fine print: This isn’t some degen leverage play. The credit line comes with standard covenants and a conservative loan-to-value ratio (because even crypto-natives know 2022’s margin call trauma still stings).

Wall Street take note: While suits debate ETF flows, crypto’s backbone keeps building—with or without their approval. Next stop? Probably borrowing against moon tickets.

The deal also includes conversion from a floating-rate structure to a fixed interest rate of 9.0% as a condition. This would help improve Hut 8’s overall cost of capital, compared to a stated interest rate ranging from 10.5% to 11.5% between the Q4 2023 and Q1 of 2025. This fixed-rate structure shields Hut 8 from potential interest rate hikes, a departure from the variable-rate norm in crypto lending. 

Hut 8 CEO Asher Genoot highlighted the partnership’s focus on “risk-managed growth,” emphasizing improved terms like a no-rehypothecation covenant—ensuring pledged bitcoin does not reused as collateral. 

“As we advance a robust pipeline of growth opportunities, we have partnered with Coinbase to strategically double the size of our credit facility and deliver significantly improved terms,” said Asher, adding, “The amended structure reflects a shared commitment to disciplined growth and leveraging flexible, non-dilutive capital as we position ourselves to execute on opportunities in our pipeline.”

As the crypto landscape evolves, Hut 8’s bold financing could signal a maturing industry—or a calculated gamble in an unpredictable market.

Also read: Anthony Pompliano’s Firm Buys 3724 Bitcoin Following $1B Merger Deal