Hut 8 Mining secures $50 million facility via Coinbase Credit

By Mary-Katherine Stinson

Lexington, Ky., June 26 – Hut 8 Mining Corp. and subsidiary Hut 8 Holdings Inc. entered a $50 million credit facility via Coinbase Credit, Inc., according to a press release.

The credit facility provides a $15 million term loan, expected to be funded at or shortly after closing. An additional $20 million delayed-draw term loan tranche will be available between one and two months following closing, with a third $15 million delayed-draw term loan tranche to be available within 15 business days following the completion of the company’s merger with U.S. Data Mining Group, Inc.

The availability, in each case, is subject to the company’s maintenance of a specific loan-to-value ratio.

All borrowings will bear interest at the Federal Funds rate on the date of borrowing plus 500 basis points, subject to a 3.25% floor for the benchmark rate.

The facility matures 364 days after the first borrowing.

It is secured by the company’s interest in certain Bitcoin held by Coinbase Custody Trust Co., LLC.

The proceeds will be used for general corporate purposes.

Hut 8 is an Ontario, Canada-based digital asset mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.