Hut 8 focuses on Anchorage loan repayment, AI expansion
Hut 8 Corp., one of North America’s largest Bitcoin miners, announced that Anchorage Digital has converted the remaining $38 million of its loan into common stock.
The conversion was completed at $16.395 per share, a 51% premium to the 20-day volume-weighted average price through September 26.
This move significantly improves Hut 8’s financial flexibility as it pursues new growth opportunities in AI and mining infrastructure.
This transition eliminates all obligations associated with the loan, giving Hut 8 greater flexibility as it continues to expand into high-performance computing and AI hosting. The company plans to file further details via Form 8-K with the SEC in the future.
The loan, which began in February 2023, was secured by collateral for 21,000 Bitcoin mining machines. The original loan interest rate was 14%, but was lowered to 9% in June.
Originally scheduled to mature in five years, the equity conversion allowed Hut 8 to use up the remaining balance early and further reduce debt.
diversification
Even after the debt conversion, Hut 8 still has approximately $290 million in debt, including $150 million raised in June 2024 to fund expansion of its AI data center.
Nonetheless, the company’s reduced leverage, combined with its focus on AI hosting and mining infrastructure, puts it in a stronger position to negotiate with potential partners and advance major projects.
Hut 8 has expanded beyond cryptocurrency mining and recently launched a GPU-as-a-Service program powered by Nvidia H100 GPUs in collaboration with AI developers.
The company’s long-term strategy aims to integrate AI infrastructure into its business model to diversify its revenue streams and further enhance its resilience in the evolving digital asset space.
