Hut 8 Boosts Coinbase Credit Line to $200M as AI Expansion Accelerates

Bitcoin mining and digital infrastructure firm **Hut 8 Corp. (NASDAQ: HUT)** amended its credit agreement with Coinbase Credit on December 22, 2025, increasing the borrowing capacity by **$70 million** to a total of **$200 million**. The company drew the additional funds immediately for general corporate purposes, according to an SEC filing.

Facility Details
– **Bitcoin-Collateralized** — Secured by BTC held in Coinbase Custody (no rehypothecation allowed).
– **Limited Recourse** — Coinbase’s claims restricted to pledged collateral.
– **Economic Terms** — Largely unchanged from prior agreement, including ~9% interest rate.
– This marks the fourth amendment, building on prior expansions (e.g., to $130M in June 2025).

The move provides non-dilutive liquidity amid thin mining margins post-2024 halving.

AI and HPC Pivot Accelerates
The expansion supports Hut 8’s diversification into higher-margin opportunities:
– **Landmark AI Deal** → In December 2025, signed a 15-year, **$7 billion** lease with Fluidstack (backed by Google financial support) for 245 MW at River Bend campus, powering AI data centers. Potential value up to **$17.7 billion** with renewals; ROFO for additional 1,000 MW.
– **Broader Pipeline** → Positions Hut 8 as energy infrastructure platform for AI/HPC, complementing Bitcoin mining and treasury (13,696 BTC held, ~$1.2B+ value).

Market Reaction and Implications
– **Stock Surge** → HUT shares jumped ~11–14% on announcement, closing 2025 strong with >134% annual gains (~$51/share).
– **Industry Trend** → Highlights miners pivoting to stable AI revenue amid volatility; Hut 8 stands out with strong treasury and institutional-grade deals.
– **Outlook** → Enhanced flexibility for growth without dilution; analysts view as competitive edge in consolidating sector.

Risks Remain
Execution on AI projects, competition for compute power, and BTC price volatility could impact collateral requirements.

This credit boost reinforces Hut 8’s hybrid crypto-AI strategy, offering resilient growth potential in a challenging mining environment.