Hut 8, a bitcoin mining and AI compute firm, has replaced its Coinbase Credit facility with a cheaper $200 million bitcoin-backed deal from FalconX. The refinancing lowers the interest rate to 7% from 9% and frees up 3,300 BTC worth about $260 million. The move boosts liquidity as the company expands into AI infrastructure.
Hut 8 announced the refinancing of its bitcoin-backed credit facility, swapping an existing arrangement with Coinbase Credit for a new 364-day, $200 million facility with FalconX. The deal reduces the fixed interest rate by 200 basis points to 7% from 9%, according to the company's press release. It also releases approximately 3,300 bitcoin—valued at roughly $260 million as of May 1—from collateral, providing greater flexibility for business growth. Sean Glennan, CFO of Hut 8, said, “This refinancing strengthens our balance sheet by decreasing our cost of debt while simultaneously increasing Bitcoin held outside collateral covenants, resulting in additional liquidity to deploy into the growth of our business.” He added, “It advances our broader objective of optimizing the role of bitcoin on our balance sheet and lowering our cost of capital.” The refinancing aligns with a trend among bitcoin miners pivoting to AI computing and data centers to secure better credit terms. Last week, Hut 8 priced $3.25 billion in senior secured notes to fund a 245-megawatt data center at its River Bend campus in St. Francisville, Louisiana. The project includes a 15-year, $7 billion lease with AI firm Fluidstack, backed by Google, with potential value up to $17.7 billion including renewals. Hut 8 shares rose about 1.5% on Monday amid a bitcoin rally above $80,000. The company is set to report first-quarter 2026 earnings soon.
