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Concluded a loan facility of approximately 7.1 billion yen with Coinbase Credit
US Nasdaq-listed crypto asset (virtual currency) mining company Hut8 announced on the 26th that it had signed a credit line agreement of approximately 7.1 billion yen ($50 million) with Coinbase Credit, a subsidiary of major US virtual currency exchange Coinbase. .
Hut8 CEO Jamie Leverton said:
This credit facility provides greater financial flexibility. At the same time, even after entering the Bitcoin (BTC) halving, it will be possible to maintain a flexible Bitcoin financial management strategy.
A Hut8 spokesperson said, “We have the largest stock of self-mined bitcoin of any publicly traded company, and this credit facility allows us to maintain financial flexibility while maintaining HODL (on hand). We can maintain our strategy of holding
It seems that the “HODL strategy” is an option considering the possibility that the scarcity of Bitcoin will be maintained due to the Bitcoin halving.
The credit facility will be provided in the form of a fixed term loan of approximately 2.2 billion yen ($15 million). The deal includes an option to withdraw an additional approximately 2.9 billion yen ($20 million), which will be accessible through a second loan within a month or two after the deal closes.
In addition, there is also the option to withdraw approximately 2.2 billion yen ($15 million) in a third withdrawal, which will be provided within 15 business days after the completion of the merger of Hut8 and US Bitcoin Corp.
Hut8 said it would use the funds from the loan for “general corporate purposes.”
What is half-life
It refers to the timing when the mining reward (= new issue amount) of virtual currency such as Bitcoin is reduced by half. Many cryptocurrencies have an “issue limit” to prevent inflation, and the system is designed so that the amount of new issuance is halved each time the halving period occurs at regular intervals. It is also a notable event unique to cryptocurrencies, as the scarcity value increases significantly as the supply decreases, making it easier for the price to soar.
Cryptocurrency Glossary
Merged with USBTC
In February, Hut8 just announced a merger with US Bitcoin Corp (USBTC), a US cryptocurrency mining and HPC infrastructure company. The new company name will be Hut8 Corp.
After the merger, it is expected that USBTC will be able to diversify its revenue sources through its expandable mining facilities, large-scale computer hosting business, and infrastructure management and operation such as data centers.
The merger is currently underway, and Hut8 expects it to be completed by the first half of the third quarter (July-September) of 2023.
connection: Listed cryptocurrency mining company Hut8 reports a decline in revenue
The new company is expected to have a market capitalization of about 142 billion yen ($990 million). It will also have access to approximately 825 megawatts of electricity at six sites in the United States, using a combination of energy sources such as wind and nuclear power.
Hashrate reaches 7.5 EH/s (exahash per second), making it one of the largest Bitcoin miners in North America. EH/s is the ability to perform 100 quadrillion hash calculations per second.
What is hash rate
Mining mining speed. In Japanese, it is expressed as “mining speed”. The unit is “hash/s”. “s” stands for “second” and represents “how many calculations can be done per second”. It is used as an index to show the processing capacity of mining equipment and how fast cryptocurrency mining is performed.
Cryptocurrency Glossary
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