Hut 8 Mining, a Canadian Bitcoin mining company, has announced a $50 million credit agreement with Coinbase Credit. The credit facility is associated with Hut 8’s subsidiary, Hut 8 Holdings, as the borrower.
According to the announcement, the borrowed funds will be used for general corporate purposes. The credit facility provides a $15 million term loan expected to be funded on or shortly after closing.
According to Hut 8’s CEO, Jaime Leverton, the credit facility provides the company with added financial flexibility, especially as the upcoming halving will reduce the mining block rewards from 6.25 BTC to 3,125 BTC.
Despite the significant financial challenges in the Bitcoin mining industry, Hut 8 has emerged as a prominent player in the market, serving as a reliable tool for Bitcoin mining.
While some mining companies like Argo Blockchain were forced to sell a portion of their Bitcoin holdings during the bear market of 2022, Hut 8 remained true to its long-term HODL strategy.
According to the company’s Q1 2023 financial report, Hut 8 currently holds a total of 9,133 self-mined Bitcoin as of March 31, 2023. This number is expected to continue increasing leading up to the halving process.