Hut 8 has refinanced its bitcoin-backed credit facility, replacing its Coinbase Credit arrangement with a new $200 million deal from FalconX. This move reduces its fixed interest rate from 9% to 7%, improving borrowing costs by 200 basis points.
The new facility, which has a term of 364 days, allows Hut 8 to free up approximately 3,300 bitcoin previously used as collateral, valued at around $260 million as of May 1. Hut 8's CFO, Sean Glennan, stated that this refinancing enhances the company's balance sheet by lowering debt costs and increasing liquidity for business growth. The company aims to optimize the role of bitcoin on its balance sheet and reduce its overall cost of capital.