Cryptocurrency mining company Hut 8 obtains a $50 million credit line from Coinbase Credit

ChainCatcher news, the cryptocurrency mining company Hut 8 Mining Corp. today announced that it has entered into a $50 million credit arrangement with its subsidiary Hut 8 Holdings Inc. and Coinbase Credit, Inc. (the lender). The proceeds from the loan will be used for general corporate purposes.

The credit arrangement provides for a $15 million term loan, which is expected to be funded at or shortly after the completion of the transaction. The arrangement also offers an option for an additional $20 million delayed draw term loan to be drawn in a second borrowing within one to two months after the transaction closes, as well as an option for an additional $15 million delayed draw term loan to be drawn in a third borrowing within 15 business days after the completion of the previously announced merger between Hut 8 and U.S. Data Mining Group, Inc. In each case, a specified loan-to-value ratio must be maintained.

The credit facility matures 364 days after the date of the first borrowing. Obligations under the credit facility are secured by certain Bitcoin interests held by the borrower in custody with Coinbase Custody Trust Company, LLC. (source link)