North America-based mining company Hut 8 has entered a $50 million credit facility with Coinbase’s subsidiary Coinbase Credit.
During the 2022 crypto winter, the mining companies significantly suffered. Some of the largest mining companies had no option but to file for bankruptcy.
Loan Will Give Hut 8 Seeks Additional Financial Flexibility
On Monday, Hut 8 announced entering a $50 million credit facility with Coinbase credit under the following terms:
- A $15 million term loan, which would be provided shortly after the closure of the deal.
- An option to borrow an additional $20 million after one to two months of the deal’s finalization.
- Hut 8 can borrow an additional $15 million within 15 business days of completing the merger with US Bitcoin Corp.
The announcement says that the additional borrowing would be subject to maintaining a specific loan-to-value ratio.