Hut 8 Corp. has secured a $200 million, 364‑day Bitcoin‑backed credit facility from FalconX, replacing its previous arrangement with Coinbase Credit, Inc. The new line of credit is non‑recourse and carries a fixed 7.0% interest rate, a 200‑basis‑point improvement over the 9.0% rate on the prior facility.
The facility frees roughly 3,300 BTC, valued at about $260 million as of May 1 2026, from the collateral package. The freed Bitcoin increases the company’s liquidity and reduces its cost of debt, while the fixed rate locks in lower financing costs for the full term.
The refinancing supports Hut 8’s strategic pivot toward a power‑first, AI‑data‑center platform. The company has signed a 15‑year lease for 245 MW of AI‑data‑center capacity at its River Bend campus, backed by Google, and the additional liquidity will help fund that expansion and other growth initiatives.
CEO Asher Genoot 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.” CFO Sean Glennan added, “This refinancing strengthens our balance sheet by decreasing our cost of debt while simultaneously increasing Bitcoin held outside collateral covenants, resulting in additional liquidity to deploy into the growth of our business.”
Investors responded favorably to the improved terms, noting the lower borrowing costs and the significant increase in unencumbered Bitcoin holdings. The refinancing comes just before Hut 8’s first‑quarter 2026 earnings release scheduled for May 6, positioning the company with stronger financial footing for the upcoming report.
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