Coinbase Offers $50 Million Loan to Hut 8 Ahead of Bitcoin Halving for Financial Flexibility and Treasury Management

Coinbase has offered a $50 million loan to Hut 8, a prominent publicly traded Bitcoin mining company, as it prepares for the upcoming Bitcoin “halving” expected in April 2024. The loan will be disbursed in installments, with $15 million provided soon after the deal closes, $20 million within one to two months after closing, and an additional $15 million following a merger between Hut 8 and U.S. Data Mining Group. The loan will be secured by Bitcoin held in Coinbase custody and will support Hut 8’s general corporate purposes while maintaining its Bitcoin treasury management strategy. Hut 8 follows a “hodl” strategy, retaining most of the Bitcoin it mines on its balance sheet, and the loan from Coinbase provides additional financial flexibility amidst market fluctuations. The company’s shares have surged over 200% this year, driven by positive sentiment in the Bitcoin market.