Hut 8 Mining Corp., a leading digital asset mining pioneer and high-performance computing infrastructure provider, has announced a new US$50 million credit facility with Coinbase Credit, Inc. The loan proceeds will be used for general corporate purposes.

“This credit facility gives us additional financial flexibility,” said CEO Jaime Leverton. “At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”

The Credit Facility includes a US$15 million term loan, which is expected to be funded shortly after closing. It also offers the option to draw an additional US$20 million delayed-draw term loan tranche in a second borrowing, and an option for a further US$15 million delayed-draw term loan tranche in a third borrowing. The loans are subject to maintaining a specified loan-to-value ratio.

Interest on the borrowed funds will be calculated based on the greater of the federal funds rate or 3.25%, plus 5.0%. The Credit Facility matures 364 days after the first borrowing. The obligations under the facility are secured by Bitcoin held by the Borrower and guaranteed by the Company.

Hut 8 is one of North America’s largest digital asset miners, with two operational mining sites in Southern Alberta. They have a high capacity rate and a significant inventory of self-mined Bitcoin. Hut 8 is revolutionizing the digital asset and data center industry with its hybrid data center model that serves both traditional high-performance computing and digital asset computing sectors.

It is worth noting that this announcement includes forward-looking statements and should be considered in conjunction with the company’s continuous disclosure documents.