Coinbase opens $50 million credit line for Hut 8

How does bitcoin mining work?
How does bitcoin mining work?

Mining company Hut 8 Mining has agreed with a division of Coinbase to open a credit line for $50 million secured by bitcoins.

The firm plans to use the funds for general corporate expenses.

“The loan will provide us with additional financial flexibility. At the same time, the line ensures that we can maintain our dynamic bitcoin treasury management strategy during the halving period,” said Hut 8 CEO Jamie Leverton.

Under the agreement, Coinbase will provide a $15 million emergency loan. The mining company can expect an additional $20 million within two months. Another $15 million loan will become available to the firm 15 days after the completion of the previously announced merger with US Bitcoin.

All tranches will mature in 364 days at an annual rate of 8.25%. The loans will be backed by Hut 8’s bitcoin, which is stored in the Coinbase Custody service.

As of April 30, the company’s cryptocurrency holdings stood at 9,265 BTC — roughly $282.3 million at the time of writing.

Earlier, Hut 8 reported that it was able to deploy ~6400 ASIC miners in Texas from a problematic data center in North Bay (Ontario).

As a result, the company’s operating hashrate has grown to 3.2 EH/s.

Recall that in June, the total computing power of the network of the first cryptocurrency reached a maximum at ~394 EH/s. Mining difficulty has risen to a record high of 52.35T.

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