Hut 8 Boosts Coinbase Credit Facility to $200M to Fund AI Expansion

TLDR

• Hut 8 expanded its credit facility with Coinbase to $200 million to support general corporate purposes.
• The amended credit line was disclosed in a recent filing with the U.S. Securities and Exchange Commission.
• The expansion strengthens Hut 8’s financial flexibility during a challenging period for Bitcoin miners.
• Hut 8 continued investing in artificial intelligence and high-performance computing infrastructure.
• The company maintained its Bitcoin holdings while many mining peers sold assets to fund operations.

Hut 8 has expanded its credit facility with Coinbase to $200 million as it strengthens its position in artificial intelligence and high-performance computing. The firm disclosed the amendment in a filing with the U.S. Securities and Exchange Commission (SEC), noting it will use the funds for general corporate purposes. The expansion comes during a year when many Bitcoin miners have struggled with declining block rewards and rising operational costs.

Financial Flexibility Grows Despite Mining Sector Pressures

Hut 8 finalized the updated agreement with Coinbase Credit to double its existing facility from $100 million to $200 million. The facility provides immediate liquidity while allowing the firm to manage its treasury without selling Bitcoin reserves. A company spokesperson confirmed, “The line will be used strategically as we continue to invest in growth.”

While other miners have sold Bitcoin to fund operations, Hut 8 has retained holdings through its majority stake in American Bitcoin. This strategy supports its broader ambitions across computing infrastructure, particularly in AI workloads and data-intensive services. The credit line provides added financial strength during a time of fluctuating margins in the mining sector.

The firm’s operational resilience contrasts with peers facing higher electricity rates, increasing hardware costs, and macroeconomic instability. The April 2024 Bitcoin halving reduced block rewards from 6.25 to 3.125 BTC, compounding industry challenges. In response, some firms have downsized or paused operations, while Hut 8 has continued to invest.

Bitcoin Holdings Strengthen Corporate Strategy

Hut 8 ranks ninth globally among corporate Bitcoin holders, with 13,696 BTC valued at over $1.2 billion. Its subsidiary, American Bitcoin, holds another 5,098 BTC worth about $458 million. Together, their holdings exceed 18,000 BTC, reflecting a strong treasury approach.

These holdings position the company to weather volatility without heavy reliance on asset sales. By comparison, several public miners have reduced reserves to cover rising operational expenses. Hut 8’s continued accumulation reinforces its focus on long-term positioning rather than short-term liquidity.

Rising energy prices and ongoing U.S. tariffs on mining hardware have placed cost pressure on competitors. Many miners rely on Chinese-made ASICs, which now face higher import costs due to extended trade measures. Supply chains remain under strain, particularly for specialized components used in mining rigs.

Hardware Discounts Signal Industry Challenges

Bitmain has launched price cuts across several mining hardware models, offering steep discounts through bundled promotions. One recent offer includes four S19 XP+ Hydro units and a container, priced near $4 per terahash. Shipments for this offer are set for January 2026.

This pricing reflects intensifying pressure in the hardware market as mining margins continue to shrink. Sellers are moving to clear inventory and maintain customer interest despite lower hashrate profitability. Analysts say such trends indicate sellers are securing orders well ahead of delivery schedules.

Meanwhile, Bitcoin’s network hashrate fell 4% through mid-December 2025, according to VanEck analysts. The dip could signal potential upward movement in Bitcoin’s price over the coming months. “When hash rate compression persists, forward returns often increase,” VanEck noted in its latest report.

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