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.
Some community members believe that it is a great move by Hut 8. They explained, “Hedging against the coming halving will definitely help them navigate the changes in the mining landscape.”
While others criticized the firm for taking more debt, a community member questioned, “we are celebrating even more debt?”
Click here for our guide to cryptocurrency cloud mining.
In March, BeInCrypto reported that Hut 8 and US Bitcoin Corp are working on a $900 million merger. The merger aims to leverage Hut 8’s operational model and US Bitcoin Corp’s data centers.
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