Bitcoin miner Hut 8 has successfully expanded its borrowing capacity with Coinbase, a United States-based cryptocurrency exchange, to $65 million. This comes as a result of an additional $15 million secured from a Coinbase subsidiary, as stated on January 12. This new deal is an amendment and restatement of Hut 8’s previous $50 million credit facility with Coinbase, which also included an optional $15 million term loan. The newly acquired loan will be used for general corporate purposes, similar to the allocation of funds from the previous financial arrangement. The loan carries the same interest rate as the previous ones and is secured by Hut 8’s interest in an unspecified amount of Bitcoin held in Coinbase Custody. The loan will mature 364 days after the date of the first borrowing.
In addition to the expanded borrowing capacity, Hut 8 has also acquired four natural gas power plants in Ontario, Canada. This acquisition was made possible through court approval from the Ontario Superior Court of Justice. The approval allows Hut 8’s newly established Canadian subsidiary, BidCo, to execute the acquisition of a 40 MW facility in Kapuskasing, a 110 MW facility in Kingston, a 120 MW facility in Iroquois Falls, and a 40 MW facility coupled with a Bitcoin mining operation in North Bay.
Alongside the approval, a new funding arrangement is set to take place between Macquarie and BidCo. Macquarie partnered with Hut 8 to submit the bid for the North Bay Bitcoin mine. This financial agreement will take the form of an operating lease facility, with Macquarie securing a 20% stake and Hut 8 retaining an 80% equity interest. The anticipated closure of this transaction is slated for February 15, contingent upon the resolution of all pending litigation claims.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇦 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | Macquarie, Coinbase, Ontario Superior Court of Justice, Hut 8, BidCo |
| Currencies | Bitcoin |
| Securities | None |
