North American mining company Hut 8 has secured a $50 million credit facility with Coinbase Credit, a subsidiary of Coinbase. This comes after a challenging period for mining companies during the 2022 crypto winter, with some of the largest players having to file for bankruptcy. Hut 8 hopes that the credit facility will provide additional financial flexibility.
The agreement includes a $15 million term loan, which will be granted shortly after the deal’s closure. There is also an option for Hut 8 to borrow an additional $20 million after one to two months, and another $15 million within 15 business days of completing a merger with US Bitcoin Corp. However, this additional borrowing would be subject to maintaining a specific loan-to-value ratio.
Opinions within the community are divided. Some view this move as a smart hedge against the upcoming halving and changes in the mining landscape, while others criticize Hut 8 for taking on more debt. It should be noted that Hut 8 and US Bitcoin Corp are currently working on a $900 million merger, aiming to leverage Hut 8’s operational model and US Bitcoin Corp’s data centers.
Continue reading on Beincrypto.com
By
By
By
By
By