The post Hut 8 locks in $1B credit line, but faces 40% liquidity rules appeared on BitcoinEthereumNews.com.
Bitcoin miner Hut 8 announced on Sept. 28 that it had closed a four-year, $1 billion senior secured credit line. The facility gives the parent company room to borrow during site development and to back construction obligations with letters of credit. Its securities filing says no amounts were outstanding when the agreement closed on Sept. 24. Hut 8 says letters of credit can support interconnection deposits and obligations to utilities and equipment vendors, reducing the cash it needs to post as collateral. The $1 billion letter-of-credit sublimit is contained within the overall commitment. In effect, the line offers two ways to use a single pool of bank capacity: borrowing cash or securing eligible obligations. Flexibility for development, exposure at the parent Hut 8’s June 30 balance sheet listed $233.6 million in cash, with restricted funds reported separately. The line can help bridge interim development needs while Hut 8 decides when to arrange longer-term project financing, according to the company. That timing gives the parent a financing option while projects move through their earlier stages. The Catalyst What’s moving crypto. Why it matters. Get CryptoSlate’s essential stories and what to watch next. Published on Substack Seven days a week. Unsubscribe anytime. Whoops, looks like there was a problem. Please try again. Check your inbox. Your signup request was sent. If confirmation is required, follow the email from Substack. Look in spam or promotions if you don’t see it. Hut 8’s $1.07 billion secured revolver supports borrowing or letters of credit, with nothing outstanding at closing. The new agreement names Hut 8 Corp. as borrower. Certain restricted subsidiaries guarantee its obligations, and first-priority liens cover substantially all assets of the borrower and guarantors, subject to exclusions. Related Reading Bitcoin miners’ AI pipelines are on trial as Texas freezes 474 GW of data…