“The Amended Facility Adds $ 65 Million in Capital Availliness and TrimMed the Interest Rate to 9%.”, – WRITE: www.coindesk.com
The Amended Agreement Also Comes With A Fixed Interest Rate of 9% Versus The Previous Floating Rate of Between 10.5% and 11.5%. The Maturity of the Facility Was Extended to July 16, 2026.
“This Facility Has Been An Efficient Source of Capital on Our Balance Sheet,” Said Sean Glennan, Hut 8’s Chief Financial Officer. “The Combination of Improved Terms and Collalateral and Borrower Protections Reflects Our Council that Risk Discipline Is Essential To Building A Resilient and Efficiency
Unlike Many Traditional Loans, This One Is Securered by Bitcoin Holdings. Coinbase, However, is restricted from rehypotthecating the collateral, a measure that limits Counterparty Risk. The Credit Line Also Includes A Limited Recourse Clause, Further Shielding Hut 8.
The Company It Will Use The Additional $ 65 Million in Capital to Pursue Expansion Effrts.
Hut Shares Are Higher by 7.7% on Tuesday Alongside Gains for Mist of the Bitcoin Mining Sector.
Hut 8 Operates a Network of Mining and Data Infrastructure Assets Across North America, with Over 1,000 Megawatts (MW) of Energy Capacity Under Management.
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