Hut 8 Repays $38M Loan to Anchorage Digital via Stock Conversion Amid Bitcoin Mining Expansion

COINOTAG news reported on October 2 that bitcoin mining enterprise Hut 8 fully repaid approximately $38 million in loans to Anchorage Digital via stock conversion. Anchorage Digital elected to convert this debt into common stock at a premium rate of $16.395 per share. This conversion price is notably 51% higher than the 20-day volume-weighted average price recorded as of September 26. On October 1, Hut 8’s share price commenced trading at $12.30 and concluded the day at $11.15. It’s worth noting that upon restructuring its Anchorage Digital loan in February 2023, Hut 8 pledged 21,000 mining machines as collateral. Despite this repayment, the company remains with a debt burden of about $290 million. This amount includes $150 million in convertible notes, arranged with Coatue Management in June, aimed at propelling Hut 8’s ventures into the artificial intelligence computing sector.