Hut 8 Bolsters Financial Position with Major Credit Expansion and AI Contract

Hut 8 Mining Corp. has significantly enhanced its financial flexibility through a substantial credit facility increase while simultaneously securing a landmark agreement for its artificial intelligence hosting division. These strategic moves provide the company with immediate capital and a long-term revenue stream, positioning it for its next phase of growth.

In a key financial development, Hut 8 finalized an expansion of its existing Bitcoin-backed credit facility with Coinbase Credit in late December 2025. The company increased the total available credit by $70 million, bringing the facility to a total of $200 million. Notably, Hut 8 has already drawn down the entire newly available amount. The loan is collateralized by Bitcoin held in custody with Coinbase. Previous tranches of this facility carried an interest rate of approximately 9%.

This strategic financing provides the company with readily accessible capital to fund near-term initiatives. It allows for investments in infrastructure and operational expenses without the need to liquidate any of the Bitcoin held in its corporate treasury, thereby preserving its core asset base.

Substantial Bitcoin Holdings and a Transformative AI Deal

Hut 8 maintains one of the largest self-mined Bitcoin treasuries among publicly traded companies. The corporation itself holds 13,696 BTC, while its majority-owned subsidiary, American Bitcoin Corp., holds an additional 5,098 BTC. At recent valuations, this represents a formidable balance sheet position exceeding $1.2 billion for the parent company's holdings alone.

Should investors sell immediately? Or is it worth buying Hut 8?

Concurrently, the company has aggressively advanced its diversification strategy. In late 2025, Hut 8 announced a 15-year AI hosting contract with Fluidstack valued at approximately $7 billion. This agreement involves a 245-megawatt expansion of its co-location services, specifically engineered for high-performance computing (HPC) and AI workloads. The long-term, fixed-fee nature of such contracts is designed to generate more stable revenue streams that are less dependent on Bitcoin's price volatility.

The broader market environment appears supportive for Bitcoin miners and infrastructure providers. At the start of January, Bitcoin traded above $91,000. Furthermore, U.S. spot Bitcoin ETFs recorded substantial net inflows of $471.3 million on the first trading day of 2026, with volatility metrics suggesting heightened trading interest in the opening week of the new year.

This positive backdrop was reflected in Hut 8's equity performance in 2025, with its shares gaining approximately 134% over the course of the year and closing near $51.27.

Forward-Looking Utilization of Capital

With the expanded credit facility already fully drawn, Hut 8 has secured immediate liquidity to pursue strategic infrastructure projects and cover operational costs. Given the scale of the Fluidstack contract and the underlying strength of its Bitcoin-denominated balance sheet, the market anticipates specific announcements regarding the deployment of these funds in the near term. The company's moves effectively balance the preservation of its Bitcoin assets with the funding required to execute its ambitious growth strategy in high-performance computing.