Toronto, Ontario–(Newsfile Corp. – November 22, 2019) – Hut 8 Mining Corp. (TSX: HUT) (OTCQX: HUTMF) (“Hut 8” or “the Company“), one of the world’s largest public cryptocurrency mining companies by operating capacity and market capitalization, today announced that it has refinanced its existing credit facility with a new loan with Genesis Global Capital (“Genesis”). A new US$15 million credit facility with Genesis (“Loan”) will replace and terminate a previous US$14 million loan with Galaxy Digital Lending. The terms of the new Loan are a fixed 9.85% coupon per annum with an 18 month term with a bullet repayment.
“This refinancing is a major step in improving Hut 8’s cash flows and will reduce our interest costs by $426k (US$323k) per year,” said Jimmy Vaiopoulos, Chief Financial Officer of Hut 8. “Our ability to refinance debt on better terms is a testament to our performance and ability to stand out as a low cost bitcoin miner”.
“Utilizing lower interest rates as part of this refinancing, holding a significant bitcoin balance, and cash on hand, our balance sheet continues to be a distinct advantage for Hut 8,” said Andrew Kiguel, Chief Executive Officer of Hut 8.
In addition, Hut 8 switched mining pool services from Slushpool to the Bitfury Group in December 2018. This has allowed for significant cost savings as we moved to a fixed fee of US$226k (US$200 per month per BlockBox Data Center AC) at current bitcoin prices from a 2% fee of all revenues which was nearly $1 million for the 2018 year.
Since beginning its mining operations in December 2017, Hut 8 has mined over 12,305 bitcoins up to the latest quarter ending September 30, 2019. Hut 8’s current capital structure consists of 90,438,009 common shares outstanding, 2,882,222 warrants and 900,000 options.
ABOUT HUT 8 MINING CORP.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 has an exclusive North American partnership with the Bitfury Group Limited, inclusive of Bitfury…