Hut 8 swaps Coinbase loan for $200M FalconX, cuts rate to 7%

Hut 8 replaced its Coinbase Credit facility with a $200 million Bitcoin-backed credit line from institutional prime broker FalconX, the company announced Monday. The new facility lowers the fixed interest rate on its Bitcoin-backed credit to 7% from the previous 9% and released roughly 3,300 BTC from the collateral package, about $260 million at current market values.

Company filings say the refinancing is intended to reduce the cost of debt on Bitcoin-backed credit and to increase the company’s unencumbered Bitcoin while preserving access to liquidity through the new credit line.

The announcement came ahead of Hut 8’s first-quarter earnings report, due Wednesday. In its fourth-quarter filing dated Feb. 25, the company reported a net loss of $279.7 million versus net income of $152.2 million a year earlier. The quarter included a $401.9 million loss on digital assets, compared with a $308.2 million gain in the prior-year quarter.

Shares of Hut 8 rose about 1.1% in pre-market trading on the day of the announcement. The stock has gained more than 67% year-to-date.

Hut 8 is the third-largest publicly traded Bitcoin mining company by market capitalization, at roughly $8.6 billion, and ranks 17th by hash rate. On Dec. 17, 2025, the company signed a 15-year lease for 245 megawatts of AI data center capacity at its River Bend campus in a deal valued at $7 billion; the agreement includes payments financially backstopped by Google.

Asher Genoot, Hut 8’s chief executive, stated the new facility lowers the company’s Bitcoin-backed financing costs, reduces financing risk and increases its holdings of unencumbered Bitcoin.

The FalconX facility follows a pattern in which miners and energy-infrastructure firms are using Bitcoin reserves to secure financing rather than selling holdings, and multiple publicly traded miners have announced plans to add AI data center capacity alongside mining operations.