Hut 8 Doubles Its Bitcoin-Backed Loan with Coinbase at a Fixed 9% Rate

On June 24, 2025, Bitcoin mining firm Hut 8, listed on Nasdaq and TSX, announced it has doubled its Bitcoin-backed loan with Coinbase Credit from $65 million to $130 million. Notably, the new agreement includes a fixed interest rate of just 9%, significantly lower than the previous floating rate of 10.5%–11.5%. The loan term has also been extended to July 2026.

This new structure allows Hut 8 to access more capital at a lower cost without selling any Bitcoin—an important strategic move, as many mining companies prefer to hold BTC and wait for future price appreciation.

The loan is fully collateralized by Hut 8’s Bitcoin holdings, with a “no rehypothecation” clause, meaning Coinbase cannot reuse the BTC for other purposes. Additionally, it includes an improved limited recourse structure, which limits Hut 8’s legal and financial exposure.

Following the announcement, Hut 8 (HUT) shares rose 2.3% in pre-market trading on June 25, indicating a positive market response. Commentary on X echoed this sentiment, with investors viewing it as a strong financial move showing growing institutional confidence in the mining sector.

By doubling its credit facility while retaining full Bitcoin ownership, Hut 8 strengthens its position in the crypto mining space. This move may also encourage other mining firms to pursue similar credit strategies, potentially increasing institutional capital flow into the crypto debt market.

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