Hut 8 has expanded its bitcoin-backed credit facility with Coinbase Credit, raising the total borrowing capacity to $200 million. The company immediately drew the newly available funds in full.
According to a regulatory filing, the amended and restated agreement was executed on December 22. The update increased the maximum loan size by $70 million compared with the prior cap under the third amended facility.
The additional borrowing will be used for general corporate purposes. The loan is secured by bitcoin held with Coinbase Custody Trust Company. Coinbase’s recourse is strictly limited to the pledged bitcoin collateral.
<h2 class="wp-block-heading" id="credit-terms-and-interest-structure">Credit terms and interest structure</h2>
Most of the facility’s economic terms remain unchanged. This includes maturity dates and repayment provisions. In its third-quarter Form 10-Q, Hut 8 disclosed $130 million outstanding under the facility, carrying an interest rate of approximately 9%.
The interest rate structure depends on the applicable amendment period. Before the third amendment, the rate was tied to the federal funds rate with a minimum of 3.25% plus a margin. From the third amendment through final maturity, including the newly expanded facility, interest accrues based on a contractually defined base spread.
While the latest filing does not disclose the exact base spread, previous disclosures suggest a high single-digit rate. Based on reported interest expenses, the all-in borrowing cost likely remains near 9%, assuming no major benchmark changes.
<h2 class="wp-block-heading" id="why-miners-rely-on-bitcoin-backed-loans">Why miners rely on bitcoin-backed loans</h2>
The expanded credit line provides Hut 8 with additional flexibility at a time when bitcoin mining margins remain thin. Hashprice pressure has limited internally generated cash flow across the sector.
As a result, miners increasingly turn to external financing. Bitcoin-backed credit allows companies to unlock liquidity without selling digital assets or issuing new equity.
Hut 8’s move highlights a broader industry shift. As long as mining economics stay compressed, collateralized bitcoin loans are likely to remain a core funding tool for large public miners.
Read also: <a href="https://ultramining.com/news/en/hut-8-shares-jump-20-on-7b-fluidstack-lease/" rel="noopener noreferrer nofollow">Hut 8 Shares Jump 20% on $7B Fluidstack Lease</a>

Hut 8 Expands Bitcoin-Backed Credit Line to $200M

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