The Bitcoin Hut 8 mining company said on Tuesday that it had expanded its credit ease supported by Bitcoin with Coinbase Credit at $ 130 million, compared to $ 65 million.
The modified agreement is also delivered with a fixed interest rate of 9% against the previous floating rate between 10.5% and 11.5%. The maturity of the installation was extended until July 16, 2026.
“This installation was an effective source of capital in our balance sheet,” said Sean Glennan, Hut 8 financial director. “The combination of improved terms and collateral and borrowing protections reflects our conviction that the discipline at risk is essential to build a resilient and effective capital of capital.”
Unlike many traditional loans, it is secured by Bitcoin Holdings. Coinbase, however, is limited to the rechyprothecation of the guarantee, a measure which limits the risk of compensation. The credit line also includes a limited appeal clause, additional shielding 8.
The company said that it would use the additional $ 65 million in capital to continue expansion efforts.
Cabane shares are higher at 7.7% Tuesday in parallel with gains for most of the Bitcoin mining sector.
Hut 8 operates a network of mining and data infrastructure assets across North America, with more than 1,000 megawatts (MW) of energy capacity under management.
