Hut 8 refinances Bitcoin loan with FalconX

Hut 8 has secured a $200 million Bitcoin-backed credit facility from FalconX, replacing its previous loan with Coinbase Credit.

The refinancing lowers Hut 8’s fixed interest rate to 7% from 9% and releases approximately 3,300 BTC, worth about $260 million, from collateral restrictions.

The company said the move is part of a broader strategy to reduce its cost of capital while maintaining exposure to its Bitcoin holdings.

“Our capital strategy is designed to lower our cost of capital, reduce risk, and expand strategic flexibility,” said Hut 8 CEO, Asher Genoot.

The deal highlights a growing trend among miners using Bitcoin reserves as collateral to access liquidity without selling assets.

Hut 8 shares rose about 1.1% in pre-market trading following the announcement and are up more than 67% year-to-date.

The refinancing comes as Hut 8 expands into AI data centre infrastructure, including a long-term capacity agreement backed by Google.

At the time of reporting, Bitcoin price was $80,701.38.