Hut 8 Corp. has refinanced its Bitcoin-backed debt with a new $200 million, 364-day credit facility from FalconX, securing a fixed interest rate of 7 percent and releasing a significant portion of its crypto holdings from collateral requirements.
The new arrangement, which replaces a prior agreement with Coinbase Credit, provides more favorable terms for the Bitcoin miner, according to a company announcement on Monday. The deal includes borrower-friendly protections such as being limited-recourse to the pledged Bitcoin and a covenant that prevents FalconX from rehypothecating the collateral.
The new 7 percent fixed rate marks a 200-basis-point reduction from the previous 9 percent rate with Coinbase and a 450-basis-point drop from the 11.5 percent the company was paying in early 2025. The refinancing frees approximately 3,300 Bitcoin, valued at roughly $260 million as of May 1, providing Hut 8 with greater operational and strategic flexibility.
This move is expected to save the company an estimated $9 million in annual interest payments, a critical reduction as Hut 8 invests heavily in a strategic pivot to energy and AI infrastructure. The improved financial flexibility comes as the company reported a negative adjusted EBITDA of $135.4 million for 2025 amid major capital expenditures.
The cost savings and unencumbered capital from the FalconX deal directly support Hut 8’s transformation into a diversified infrastructure provider. The company has been channeling significant capital into its high-performance computing and data center operations, a strategy that has been well-received by investors, with Hut 8’s stock price up over 67 percent year-to-date.
A cornerstone of this strategy is the River Bend campus, where Hut 8 signed a 15-year lease for 245 megawatts of AI data center capacity. The agreement, valued at $7 billion, is financially backstopped by Google, signaling a strong long-term revenue stream that diversifies the company away from pure Bitcoin mining. Other miners, including Marathon Digital and CleanSpark, are pursuing similar strategies to leverage their energy infrastructure for the high-demand AI sector.
Hut 8’s ability to secure more favorable terms reflects a broader maturation in the institutional crypto-lending market. With digital asset platforms like FalconX, which is valued at $8 billion, competing more aggressively on rates and terms, established public companies with large crypto treasuries have gained significant negotiating power. Hut 8 holds a total of 13,696 BTC, making it one of the largest corporate Bitcoin holders.
The deal structure, which includes limited recourse and no-rehypothecation clauses, is becoming standard for institutional-grade lending. For lenders, the 24/7 liquidity and on-chain verifiability of Bitcoin make it an increasingly attractive form of collateral, paving the way for a more sophisticated crypto credit market.
This article is for informational purposes only and does not constitute investment advice.
