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Cheap money, fewer handcuffs
Hut 8 is doing the corporate version of refinancing your mortgage when rates finally stop being obnoxious. The company announced a $200 million Bitcoin-backed credit facility with FalconX that replaces its older Coinbase Credit deal and comes with a fixed 7.0% interest rate.
That matters because the old setup was pricier — earlier terms reportedly sat between 10.5% and 11.5%, so this move cuts borrowing costs and signals Hut 8 is trying to get leaner, not just louder.
The real prize: more Bitcoin off the leash
The refinancing also releases roughly 3,300 BTC from collateral, worth about $260 million as of May 1. In plain English: more of Hut 8’s Bitcoin can sit outside the lender’s reach, which gives the company more flexibility if markets get weird and liquidity suddenly becomes your least favorite hobby.
The new structure also includes:
- limited recourse to pledged Bitcoin
- a no-rehypothecation covenant
- fixed loan-to-value thresholds
That’s a fancy way of saying Hut 8 is trying to reduce the chance of getting boxed in by its own collateral structure.
Why investors are still watching
CEO Asher Genoot said the strategy is about lowering capital costs, reducing risk, and expanding flexibility. CFO Sean Glennan basically said the same thing in finance speak: cheaper debt, stronger balance sheet, more Bitcoin outside the jail cell.
The stock slipped anyway, because markets are moody like that. But the move is still a meaningful signal ahead of Hut 8’s earnings on May 6th. If the company can keep tightening its financing while showing operating progress, that’s the kind of setup investors usually like — especially with HUT sitting near its 52-week high.
Big picture: this isn’t a flashy growth story. It’s a balance-sheet cleanup story. And sometimes Wall Street likes boring improvements almost as much as moonshots.