Hut 8 Secures $330M Credit From Two Prime, Coinbase to Back 1.5 GW US Expansion

Hut 8 plans to develop four large-scale infrastructure sites across the U.S, advancing 1,530 megawatts (MW) of capacity as part of its strategy to grow beyond bitcoin mining into broader digital infrastructure.

This article is from Theminermag, a trade publication for the cryptocurrency mining industry, focusing on the latest news and research on institutional bitcoin mining companies.

Hut 8 announced Monday that the new projects — spanning Louisiana, Texas and Illinois — range from 50 MW to 1,000 MW and will bring Hut 8’s pipeline to more than 10 gigawatts of potential capacity. Once operational, the latest expansion would lift Hut 8’s platform to more than 2.5 gigawatts of managed capacity across 19 sites.

To support the buildout, Hut 8 is drawing on multiple financing sources, including a new $200 million revolving credit facility with digital asset investment firm Two Prime and an upsized, repriced $130 million credit line with Coinbase. Together, the two facilities add $330 million in non-dilutive growth capital, carrying a weighted average cost of 8.4%.

The company also launched a $1 billion at-the-market equity program last week, as previously reported. In addition, Hut 8 said it is in talks with banks about project-level financing tied to specific data center developments.

Hut 8 holds more than 10,000 bitcoin worth roughly $1.2 billion as of Aug. 25, which it views as a reserve asset base to secure loans or generate yield. The company said its liquidity resources, including cash, credit and bitcoin, amount to as much as $2.4 billion.

The latest expansion comes as Hut 8 accelerates its shift into energy and digital infrastructure, including high-performance computing and other energy-intensive technologies. CEO Asher Genoot described the 1.5 gigawatts of new development capacity as “the first phase of execution against a multi-gigawatt energy origination pipeline that underpins our long-term growth trajectory.” However, the company did not provide a construction timeline or commercialization plan for the planned infrastructure.

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