The mining firm of Bitcoin Hut 8 (HUT) said Tuesday that it expanded its credit line backed by Bitcoin with Coinbase Credit to $ 130 million, compared to $ 65 million.
The amended agreement also comes with a fixed interest rate of 9% versus the anterior floating rate of between 10.5% and 11.5%. The maturity of the installation was extended until July 16, 2026.
“This installation has been an efficient source of capital in our balance,” said Sean Glennan, Financial Director of Hut 8. “The combination of improved terms and guarantee protections and borrowing reflects our conviction that risk discipline is essential to build a resistant and efficient capital structure.”
Unlike many traditional loans, this is secured by Bitcoin Holdings. However, Coinbase is restricted to rehipotate the guarantee, a measure that limits the risk of counterpart. The credit line also includes a limited resource clause, more protecting cabin 8.
The company said it will use the additional $ 65 million in capital to make expansion efforts.
Hut shares are higher by 7.7% on Tuesday along with profits for most Bitcoin mining sector.
HUT 8 operates a network of mining and data infrastructure assets in North America, with more than 1,000 megawatts (MW) of energy capacity under administration.
