Hut 8 Corp (NASDAQ:HUT) shares slipped on Monday after the company announced a $200 million Bitcoin-backed credit facility with FalconX, even as the move lowers its cost of debt.
$200 Million Credit Facility
The 364-day facility replaces Hut 8’s prior agreement with Coinbase Credit and carries a fixed interest rate of 7.0%, down from 9.0%.
Earlier terms had ranged between 10.5% and 11.5%, marking a cumulative reduction of up to 450 basis points.
Improved Liquidity And Structure
The refinancing also releases approximately 3,300 BTC from collateral, valued at about $260 million as of May 1, 2026, improving liquidity.
The structure includes protections such as limited recourse to pledged Bitcoin, a no-rehypothecation covenant, and fixed loan-to-value thresholds.
Strategic Balance Sheet Impact
Hut 8 said the transaction supports its strategy to lower borrowing costs, reduce risk, and enhance financial flexibility.
CEO Asher Genoot said, “Our capital strategy is designed to lower our cost of capital, reduce risk, …
