Share this article
Hut 8 swaps Coinbase loan for cheaper FalconX deal, slashing borrowing costs as it bets big on AI
A new $200 million, 364-day bitcoin-backed facility replaces the Coinbase Credit arrangement, cutting debt costs by 200 basis points.
May 4, 2026, 6:31 p.m. 2 min read
What to know:
- Hut 8 refinanced its bitcoin-backed credit facility through FalconX, cutting its interest rate to 7% from 9%, a 200-basis-point improvement.
- The deal frees up approximately 3,300 BTC worth roughly $260 million, giving Hut 8 greater flexibility outside of collateral covenants.
- Refinancing to get better terms on their loans is becoming a trend among miners who are continually looking to pivot from mining to hosting growing AI computing needs.
“This refinancing strengthens our balance sheet by decreasing our cost of debt while simultaneously increasing Bitcoin held outside collateral covenants, resulting in additional liquidity to deploy into the growth of our business,” said Sean Glennan, CFO of Hut 8.
“It advances our broader objective of optimizing the role of bitcoin on our balance sheet and lowering our cost of capital,” he added.
The trend of refinancing for better terms continues among mining firms, as they seek to improve their credit terms and free up more capital for their pivot to AI and move away from volatile bitcoin revenues in favor of long-term leases.
