Hut 8 Swaps Costly Coinbase Debt For FalconX Credit — And Unlocks 3,300 Bitcoin Ahead Of Earnings

• The new loan carries a 7% fixed interest rate, reducing borrowing costs by up to 450 basis points.
• The refinancing frees approximately 3,300 Bitcoin, worth about $260 million, from collateral.
• The move improves Hut 8’s balance sheet flexibility ahead of its upcoming earnings report.

Hut 8 (HUT) announced on Monday that it is swapping its Bitcoin (BTC)-backed loan with Coinbase's (COIN) lending arm for a new $200 million credit facility with FalconX, ahead of its earnings later this week.

The interest rate on the new facility is fixed at 7%, lower than Coinbase Credit’s rate of 10.5%-11.5%. That’s up to a 450-basis-point reduction in interest costs, meaning Hut 8 now pays less to borrow against its Bitcoin. 

After moving from Coinbase to FalconX, Hut 8 also ends up with around 3,300 BTC free and clear, worth about $260 million.

HUT’s stock was trading flat in pre-market trade after the broader market trended lower following Iran’s warning to the U.S. Navy to stay out of the region after President Donald Trump said Washington would help free stranded ships. Retail sentiment around HUT’s stock remained in ‘bearish’ territory over the past day, accompanied by chatter at ‘normal’ levels.

Bitcoin’s price also traded flat in the last 24 hours at around $78,900 after hitting a three-month high of over $80,500 in intra-day trade. Retail sentiment around BTC on Stocktwit rose to ‘bullish ’ from ‘neutral’ over the past day, accompanied by chatter at ‘normal’ levels.The release of collateral strengthens Hut 8’s balance sheet and provides additional flexibility ahead of its upcoming earnings report.

Get updates to this developing story directly on Stocktwits.

Read also: CRCL, COIN, MSTR Stocks Gain Amid Bitcoin’s Rally To Over $80K After Trump’s ‘Project Freedom’

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