Hut 8 Up 1.25% In US Premarket As Refinances US$200 Million Bitcoin-Backed Credit Facility
Hut 8 (HUT.TO) is replacing a prior credit facility with Coinbase Credit, with a subsidiary entering into a US$200 million, 364-day bitcoin-backed credit facility with FalconX, with better terms, the company said on Monday.The new facility bears a fixed interest rate of 7.0%, a 200-basis-point improvement over the 9.0% rate under the prior Coinbase facility. The FalconX facility also unencumbers 3,300 Bitcoin, with a market value of US$260 million as of May 1. This represents Bitcoin released from the Coinbase facility net of Bitcoin pledged as collateral under the new facility, Hut 8 said."Our capital strategy is designed to lower our cost of capital, reduce risk, and expand strategic flexibility. This Facility advances these objectives: it continues the progression of improvement in our cost of debt on Bitcoin-backed credit and it expands our position of unencumbered Bitcoin, a strategic asset that enhances our financial flexibility across market cycles," said chief executive Asher Genoot.Hut 8 shares were last seen up US$0.97, to US$77.95, in New York trading.