Hut 8 expands Coinbase’s borrowing capacity to $65 million and acquires a natural gas power plant.
Bitcoin miner Hut 8 has secured an additional $15 million from a subsidiary of US-based cryptocurrency exchange Coinbase, according to a statement on January 12.
The miner said the new deal amends and rewrites its previous $50 million credit facility with the cryptocurrency trading platform, bringing its cumulative credit portfolio to $65 million.
Last year, Hut 8 secured a $50 million credit facility from Coinbase, with an option for an additional $15 million term loan.
The BTC miner plans to use the newly acquired $15 million loan for general corporate purposes, reflecting the allocation of funds from previous financing agreements. The new loan also has the same interest rate as the previous loan.
“All amounts borrowed from credit institutions will be subject to the greater of (a) (i) the Federal Funds Rate on the date of such loan and (ii) 3.25% + (b) 5.0%. .”
Hut 8 also added that the loan is secured by interest on an unspecified amount of Bitcoin held in Coinbase Custody and that the loan expires 364 days from the date of the first loan.
new natural gas power plant
Meanwhile, Hut 8 recently received court approval from the Ontario Superior Court of Justice to acquire four natural gas power plants in Ontario.
The approval allows BidCo, Hut 8’s newly formed Canadian subsidiary, to execute on the acquisition of a 40 MW facility in Kapuskasing, a 110 MW facility in Kingston, a 120 MW facility in Iroquois Falls, and a 40 MW facility combined with a Bitcoin mining operation. In North Bay.
Upon approval, a new funding agreement is expected to take shape between Macquarie and BidCo. Macquarie has submitted a bid for the North Bay Bitcoin mine in partnership with the miner.
The finance deal represents an operating lease facility, with Macquarie holding a 20% stake and Hut 8 holding an 80% stake. The transaction has an expected closing date of February 15, which is contingent on the resolution of all pending litigation claims.
