Bitcoin miner's stock drops despite landing $1.07 billion credit facility

Hut 8 announced on Sept. 28 it has secured a $1.07 billion revolving credit facility, one of the largest financing deals in the Bitcoin mining sector this year. The stock has fallen anyway.

Shares of Hut 8 (Nasdaq: HUT) were trading around $94.52 on Sept. 28, down roughly 6% from $100.60 a week earlier.

The sharpest decline came on Sept. 25, the same day the facility closed, when the stock dropped to $98.20 and has struggled to recover since.

Robinhood

Inside the $1.07 billion credit line

A revolving credit facility is essentially a large, flexible line of credit, similar to a corporate credit card. Hut 8 can borrow from the $1.07 billion pool as needed, repay without penalties, and borrow again over a four-year term.

The interest rate starts at roughly 1.75 percentage points above a benchmark called SOFR, which tracks overnight borrowing costs between banks.

JPMorgan Chase is leading the facility as administrative and collateral agent.

Hut 8, based in Miami, is an energy infrastructure company that operates Bitcoin mining, AI data centers, and cloud computing.

The company says the new credit line is non-dilutive, meaning it doesn't issue new shares to raise the capital, and strengthens its balance sheet as it pursues an investment-grade corporate profile.