Hut 8 Secures $200M Falconx Loan at 7%, Frees 3,300 BTC
Hut 8 secured a 364-day, $200 million bitcoin-backed facility from Falconx at a 7% fixed rate, replacing Coinbase Credit and freeing about 3,300 BTC (~$260M) from collateral.
Hut 8 Corp. on May 4 announced a 364-day, $200 million bitcoin-backed credit facility with digital-assets prime broker Falconx. The one-year loan carries a 7.0% fixed interest rate and replaces the company’s previous line with Coinbase Credit. The deal freed roughly 3,300 bitcoin, valued at about $260 million on May 1, 2026, from collateral requirements.
The new rate is 200 basis points lower than the 9.0% rate under the prior Coinbase agreement, the company stated, and the refinancing is intended to lower borrowing costs and increase liquid crypto holdings to support expansion of its energy and compute infrastructure businesses.
Under the facility, the 3,300 BTC are unencumbered and available for general liquidity. The agreement restricts Falconx from rehypothecating the pledged bitcoin, uses a limited-recourse structure and sets fixed loan-to-value thresholds to reduce the risk of automatic margin ratchets if bitcoin’s price falls.
Hut 8 CEO Asher Genoot described the capital approach as “to lower our cost of capital, reduce risk, and expand strategic flexibility.” He added the transaction increases the company’s unencumbered bitcoin and enhances financial flexibility across volatile market cycles.
CFO Sean Glennan noted the cumulative reduction in interest rates has reached as much as 450 basis points compared with levels the company paid between late 2023 and early 2025. The company plans to use the additional liquidity to fund growth in its energy and digital infrastructure operations.
Falconx Head of Credit Craig Birchall praised Hut 8’s diversified revenue streams and credit profile, describing the combination of institutional stability and digital-asset scale as uncommon in the current market.
The fixed one-year term provides predictable financing costs for the facility period. Borrower protections in the agreement are intended to limit sudden margin pressure tied to bitcoin price swings while allowing the company greater access to deployable bitcoin on its balance sheet.
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