Hut 8 has secured a $200 million bitcoin-backed credit facility from Falconx, replacing its previous lending arrangement with Coinbase Credit. The new facility runs for 364 days and carries a fixed interest rate of 7.0%, down from 9.0% under the prior agreement.
The company said on May 4 that the refinancing is aimed at reducing debt costs while increasing the amount of crypto it can deploy freely. Executives framed the move as part of a broader balance-sheet effort tied to the expansion of Hut 8’s energy platform and digital compute infrastructure.
About 3,300 BTC Released From Collateral
Under the revised terms, roughly 3,300 BTC have been released from collateral requirements. Hut 8 said those holdings were worth about $260 million as of May 1, 2026, and can now be used as general liquidity.
CEO Asher Genoot said the company’s capital strategy is built around lowering its cost of capital, reducing risk, and widening strategic flexibility. He added that the increase in unencumbered bitcoin strengthens Hut 8’s financial room to operate through volatile market cycles.
New Structure Adds Borrower Protections
The Falconx facility includes several borrower-friendly terms. One is a no-rehypothecation covenant, which prevents Falconx from lending out the bitcoin pledged by Hut 8 as collateral. The agreement also uses a limited-recourse structure and fixed loan-to-value thresholds, limiting exposure to automatic ratchet-style changes if bitcoin’s price declines.
Chief Financial Officer Sean Glennan said the cumulative reduction in borrowing costs reaches as much as 450 basis points compared with rates the company paid between late 2023 and early 2025. Falconx Head of Credit Craig Birchall said Hut 8’s diversified revenue streams and credit profile stand out in the current market.
Liquidity Earmarked for Energy and Compute Expansion
Management said the added liquidity will support Hut 8’s growth plans across energy and compute infrastructure. For a bitcoin-heavy mining company, releasing previously encumbered holdings while cutting funding costs from 9.0% to 7.0% changes how capital can be allocated across operations and treasury management.