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    Home»Bitcoin»Hut 8 Secures $200M Bitcoin-Backed Credit Facility from FalconX
    Bitcoin

    Hut 8 Secures $200M Bitcoin-Backed Credit Facility from FalconX

    May 4, 20263 Mins Read


    Nasdaq-listed Bitcoin mining and energy infrastructure company Hut 8 secured a $200 million Bitcoin-backed credit facility from institutional crypto prime brokerage FalconX, replacing its prior credit facility with Coinbase Credit. 

    The new facility reducwd the company’s fixed interest rate to 7% from 9% under the prior Coinbase credit structure, as part of the company’s focus on lowering the cost of debt on its Bitcoin-backed credit and broader cost of capital, said Hut 8 in a Monday announcement.

    The refinancing unencumbered about 3,300 BTC, worth roughly $260 million, from the collateral package after replacing the prior Coinbase facility, Hut 8 said.

    The deal shows how Bitcoin miners and energy infrastructure firms are using BTC reserves to manage liquidity without selling their holdings, as Hut 8 expands into AI data centers and prepares to report first-quarter earnings on Wednesday.

    “Our capital strategy is designed to lower our cost of capital, reduce risk, and expand strategic flexibility,” said Asher Genoot, CEO of Hut 8, adding that the new facility helps improve the company’s cost of debt on Bitcoin-backed credit and “expands our position of unencumbered Bitcoin.”

    On Feb. 25, Hut 8 posted a fourth-quarter net loss of a $279.7 million, from income of $152.2 million a year earlier, Cointelegraph reported. The results were affected by a $401.9 million loss on digital assets in the quarter, compared with a $308.2 million increase a year earlier.

    Top Bitcoin mining companies by market capitalization. Source: Companiesmarketcap.com

    Hut 8 is the third-largest Bitcoin mining firm by market capitalization, currently worth about $8.6 billion according to Companiesmarketcap data. However, it only ranks as the 17th-largest Bitcoin miner in terms of hash rate, according to Bitcoinminingstock.

    Related: Capital B raises $1.3M from Adam Back for Bitcoin strategy

    Hut 8 shares rise in pre-market trading

    Shareholders welcomed the new Bitcoin-backed credit facility, as Hut 8 shares rose over 1.1% in pre-market trading on Monday, data from Yahoo Finance shows.

    Hut 8 stock price, year-to-date chart. Source: Yahoo Finance

    Hut 8’s stock price is up over 67% year-to-date and has gained significant traction since the Bitcoin miner announced its expansion to AI data center infrastructure.

    On Dec. 17, 2025, Hut 8 signed a 15-year lease for 245 megawatts of AI data center capacity at its River Bend campus valued at $7 billion. The agreement includes payments financially backstopped by Google and builds on Hut 8’s broader expansion into AI. 

    Other Bitcoin miners that announced strategic pivots to AI infrastructure include  CleanSpark, Core Scientific, HIVE Digital and MARA Holdings.

    Magazine: Bitcoiners eye ‘sell in May,’ SBF’s bid for new trial shut down: Hodler’s Digest, April 26 – May 2

    Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.



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