TechFlow News, May 4: According to a PR Newswire report, Hut 8 Corp. (Nasdaq/TSX: HUT) announced that its subsidiary has entered into a $200 million, 364-day Bitcoin-secured credit facility with FalconX, replacing its prior similar arrangement with Coinbase Credit. The new facility carries a fixed interest rate of 7.0%, representing a 200-basis-point reduction from the previous 9.0% rate under the Coinbase agreement, and a cumulative reduction of up to 450 basis points compared to the historical rate range of 10.5%–11.5% observed from late 2023 through early 2025.
This refinancing simultaneously releases approximately 3,300 bitcoins (valued at roughly $260 million as of May 1), freeing them from collateral obligations and further enhancing the company’s balance sheet liquidity and financial flexibility. The new agreement retains key protective mechanisms, including a limited-recourse structure, a prohibition on re-pledging bitcoin, and a fixed loan-to-value (LTV) threshold.
