Hut 8 Corp. (NASDAQ, TSX: HUT) announced its subsidiary entered into a $200 million, 364-day bitcoin-backed credit facility with FalconX, replacing its prior facility with Coinbase Credit, Inc. The new facility carries a fixed interest rate of 7.0%, down from 9.0% under the previous arrangement.

The refinancing unencumbers approximately 3,300 bitcoin from the collateral package, representing bitcoin with a market value of approximately $260 million as of May 1, 2026. This reflects bitcoin released from the prior Coinbase facility net of bitcoin pledged as collateral under the new facility.

The facility maintains collateral and borrower protections including a limited-recourse structure where recourse is limited to pledged bitcoin collateral, a no-rehypothecation covenant on pledged bitcoin, and fixed loan-to-value thresholds with no ratchet mechanism triggered by bitcoin price declines.

"Our capital strategy is designed to lower our cost of capital, reduce risk, and expand strategic flexibility," said Asher Genoot, CEO of Hut 8. "This Facility advances these objectives: it continues the progression of improvement in our cost of debt on bitcoin-backed credit and it expands our position of unencumbered bitcoin."

The Coinbase facility previously carried stated interest rates ranging from 10.5% to 11.5% between the quarter ended December 31, 2023 and the quarter ended March 31, 2025, according to the company's statement.

Hut 8 describes itself as an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel energy-intensive technologies including AI, high-performance computing, and ASIC compute.