TL;DR:
Hut 8 Corp. announced the signing of a $200 million bitcoin-backed credit facility with Falconx, a prime brokerage firm for digital assets. The agreement, with a 364-day term and a fixed rate of 7.0%, replaces a facility with Coinbase Credit that operated at 9.0%, resulting in a reduction of 200 basis points in financing cost.
Asher Genoot, CEO of the company, explained that the capital strategy is designed to reduce the cost of capital, lower risk and expand strategic flexibility. According to Genoot, the agreement increases the company’s “unencumbered” bitcoin — that is, assets not pledged as collateral — which improves Hut 8’s financial position across volatile market cycles.
As a direct result of the refinancing, approximately 3,300 BTC valued at around $260 million were released from collateral requirements. Those funds are now available as general liquidity for the company.
The contract incorporates several borrower protections. Among them, a non-rehypothecation covenant that prevents Falconx from lending out the bitcoins pledged as collateral, a limited recourse structure and fixed loan-to-value thresholds that shield Hut 8 from automatic adjustment mechanisms in the event of a drop in the asset’s price.
Sean Glennan, CFO of the company, noted that the cumulative reduction in interest rates amounts to up to 450 basis points compared to the conditions the company faced between late 2023 and early 2025. For his part, Craig Birchall, head of credit at Falconx, pointed to Hut 8’s diversified revenue streams and credit profile, describing that combination of institutional stability and scale in digital assets as uncommon in today’s market.
