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.

Hut 8 Q1 Earnings Expectations

The release of collateral strengthens Hut 8’s balance sheet and provides additional flexibility ahead of its first quarter (Q1) earnings report on Wednesday. Wall Street expects the firm to report an adjusted loss per share of $0.36 on revenue of $79 million, according to Koyfin data. 

Hut 8’s earnings report comes at an inflection point for the firm, which has spent the better part of two years moving away from being a Bitcoin miner to an energy infrastructure company. Last year, it carved the company into two parts, piecing away its legacy Bitcoin mining business into Eric Trump-backed American Bitcoin (ABTC). 

If the company manages to match estimates, the financials would represent a meaningful jump from a year ago, when Q1 2025 revenue collapsed 57.8% year-over-year to just $21.8 million, and the company swung to a net loss of $134.3 million. 

Investors will be watching for commentary on Hut 8’s River Bend development in Louisiana, which has become the company's marquee asset. The company announced last quarter that it signed a 15-year lease worth $7 billion with Fluidstack for 245 megawatts (MW) of IT capacity at River Bend, with the lease payments backstopped by Google. 

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

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