Hut 8 announced on Monday that the Bitcoin miner has signed a $200 million credit facility with crypto prime brokerage FalconX, focusing on a fixed interest rate.
The new deal, signed via a unit of Hut 8, will replace the BTC miner’s prior credit facility with Coinbase Credit.
The deal comes as a part of the company’s efforts to reduce the cost of debt on its Bitcoin-backed credit and the overall cost of capital. Hut 8 also said that the new facility lowered the company’s fixed interest rate to 7 percent from 9 percent under the previous Coinbase credit arrangement.
The move comes against the larger backdrop of miners using BTC reserves to manage liquidity without selling their holdings. The deal also comes at a time when crypto miners have switched heavily towards AI data centers in order to remain profitable amid a not-so-great year.
In tandem with peers, CleanSpark, Core Scientific, HIVE Digital, and MARA Holdings are among the other Bitcoin miners who have declared strategic shifts to AI infrastructure.
Sean Glennan, CFO of Hut 8, stated the refinancing “strengthens our balance sheet by decreasing our cost of debt while simultaneously increasing Bitcoin held outside collateral covenants.”
Credit deal comes after previous losses
The credit deal also comes on the back of Hut 8 recording a net loss of $279.7 million for the fourth quarter, compared to $152.2 million for the same period last year.
A $401.9 million loss on digital assets during the quarter, as opposed to a $308.2 million rise a year prior, had an impact on the results, hurting the balance sheet greatly.
Despite the optimistic news of the credit facility, Hut 8 shares took a tumble as soon as the market opened on Monday. The stock is currently trading at $76.2, down over 1 percent as compared to the same time last day.
Since the Bitcoin miner revealed its plans to expand into AI data center infrastructure, Hut 8’s stock price has increased by more than 67 percent year to date.
Previously, Hut 8 secured a $7 billion, 15-year contract on 245 megawatts of AI data center capacity at its River Bend location on December 17, 2025. The deal expands on Hut 8’s wider AI growth and involves payments that are financially backed by Google.
Crypto miners turn to AI
Crypto mining companies are increasingly turning to AI infrastructure as a way to steady their income and reduce reliance on volatile crypto markets. With Bitcoin mining becoming less profitable, largely due to rising energy and hardware costs, many firms are finding that the cost of producing coins can sometimes outweigh their market value.
Instead of letting their infrastructure sit underused, miners are repurposing their data centers. The shift also comes as an easy way of money generation as the machinery is already designed to handle heavy computing and high power loads, to support AI workloads. These facilities are a natural fit for AI hardware, which requires similar levels of energy and cooling.
The shift also brings more predictable earnings because by hosting AI systems, miners can generate steady revenue while making better use of their existing assets.
