Bitcoin mining company HUT 8 (HUT) said on Tuesday it expanded its Bitcoin-backed credit line from $65 million to $130 million with Coinbase Credit.
The revised agreement may also have a fixed interest rate of 9% against previous floating rates of 10.5% to 11.5%. The facility’s maturity has been extended until July 16th, 2026.
“The facility was an efficient source of capital for the balance sheet,” said Sean Glennan, Chief Financial Officer of Hut 8. “The combination of improved terminology and collateral and borrower protection reflects our belief that risk discipline is essential to creating a resilient and efficient capital structure.”
Unlike many traditional loans, this is protected by Bitcoin Holdings. However, Coinbase is limited by restructuring collateral. This is a measure that limits counterparty risk. The credit line also includes a limited request clause, further protecting the shed 8.
The company said it would use an additional $65 million in capital to pursue its expansion efforts.
Hatt’s stocks were up 7.7% on Tuesday, along with most profits in the Bitcoin mining sector.
HUT 8 operates a network of mining and data infrastructure assets across North America, with an energy capacity of 1,000 megawatts (MW) under management.