Bitcoin Mining Firm Secures $50M Loan for Halving Prep

• Hut 8 has secured a $50 million loan from Coinbase Credit.
• The Canadian cryptocurrency mining firm will use the funds for general corporate purposes.
• The loan is secured by the Bitcoin held in Coinbase Custody and will mature 364 days after the first borrowing date.

Canadian cryptocurrency mining firm Hut 8 has received a $50 million loan from Coinbase Credit, which it plans to use for general corporate purposes. The loan provides the company with additional financial flexibility and allows it to maintain its dynamic Bitcoin treasury management strategy as it enters the halving process.

Hut 8 aims to maintain its HODL strategy

As of May 2023, Hut 8 holds 9,233 BTC, worth approximately $280 million at current prices. A spokesperson for the company said, “We are one of the largest Bitcoin holders among public companies, and this credit facility allows us to maintain our HODL strategy while providing financial flexibility.” The HODL strategy refers to holding cryptocurrencies for the long term, with the belief that their values will potentially increase over time.

Bitcoin counts down to halving

There is less than a year left until the Bitcoin block reward halving. Current data indicates that the halving will occur in 294 days, on April 16, 2024. This date may be brought forward or pushed back depending on the state of the network.