"Hut 8 Corp. announced on May 4 that it has secured a $200 million bitcoin-backed credit facility with digital assets prime brokerage Falconx, a move aimed at lowering the company's debt costs and increasing its liquid crypto holdings."
"According to a media statement, the new deal represents a 200-basis-point reduction from the 9.0% rate under the prior Coinbase agreement, which is part of a broader strategy to optimize the company's balance sheet."
"Asher Genoot, CEO of Hut 8, stated that the deal increases the company's unencumbered bitcoin assets, enhancing financial flexibility across volatile market cycles."
Hut 8 Corp. has secured a $200 million bitcoin-backed credit facility with Falconx, replacing its previous arrangement with Coinbase Credit. The new facility has a fixed interest rate of 7.0%, a reduction from the prior 9.0% rate. This refinancing strategy aims to optimize Hut 8's balance sheet and increase liquidity. Approximately 3,300 bitcoin, valued at $260 million, have been released from collateral requirements, enhancing financial flexibility. CEO Asher Genoot emphasized the importance of this deal in reducing risk and expanding strategic options.
Read at news.bitcoin.com
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