Bitcoin miner Hut 8 has refinanced its $200 million Bitcoin-backed credit facility with FalconX at a 7% fixed rate, replacing its Coinbase loan and unlocking approximately 3,300 BTC worth $260 million from collateral.
Summary
- Hut 8 has signed a $200 million Bitcoin-backed credit agreement with FalconX, replacing its previous Coinbase Credit facility and cutting its borrowing cost by 200 basis points.
- The new loan carries a fixed 7% annual interest rate, down from 9%, and will release about 3,300 BTC — worth roughly $260 million — from collateral to unencumbered status.
- The move is part of Hut 8’s broader capital strategy to optimize debt costs while leveraging its sizable Bitcoin treasury and energy infrastructure platform.
Bitcoin (BTC) miner and energy infrastructure firm Hut 8 said its subsidiary has entered into a $200 million Bitcoin-collateralized credit agreement with crypto financial institution FalconX, fully replacing its existing secured loan with Coinbase Credit.
Hut 8 pivots from Coinbase to FalconX
According to the company’s press release, the new facility carries “a fixed interest rate of 7% per annum,” which is 200 basis points lower than the 9% rate on the prior Coinbase-backed structure, a shift that Hut 8 described as significantly reducing its cost of debt capital.
The firm added that once the refinancing is completed, approximately 3,300 BTC will move from pledged to unencumbered status, corresponding to about $260 million in value based on the Bitcoin market price as of May 1, 2026, directly bolstering liquidity on its balance sheet.
Lower rates, more flexibility
Hut 8 framed the FalconX deal as part of an ongoing effort to optimize its capital stack after previously expanding its Coinbase facility multiple times, from $50 million in 2023 to $130 million in mid-2025 and then to $200 million by late 2025, each time emphasizing access to non-dilutive capital.
In an earlier story, Hut 8 outlined how its mix of credit lines and at-the-market equity was funding new U.S. sites for Bitcoin mining, AI workloads, and other high-performance computing, with more than 10,000 BTC in reserves and access to roughly $2.4 billion in total liquidity.
Today’s refinancing keeps the credit capacity at $200 million but resets the lender and pricing, aligning Hut 8 with FalconX’s institutional prime brokerage model, which has previously structured Bitcoin-backed financing facilities with traditional firms such as Cantor.
The company said shifting 3,300 BTC — a sizable portion of its treasury — out of collateral and into free status gives it more room to maneuver around market cycles and infrastructure investments, at a time when miners face tighter margins and growing pressure to monetize or leverage their coin holdings more efficiently.
In a previous crypto.news story, Hut 8 highlighted how locking in fixed-rate debt at 9% improved its overall funding profile versus earlier floating-rate terms; the latest cut to 7% with FalconX continues that trajectory as the firm positions itself as both a large-scale miner and an energy-backed digital infrastructure platform.
