The Facility bears a fixed interest rate of 7.0%, a 200-basis-point improvement over the 9.0% rate under the prior Coinbase facility. The Facility reflects significant improvements in economic and structural terms while preserving key collateral protections, including:

  • A reduction in fixed interest rate to 7.0% from 9.0% under the prior Coinbase facility. The Coinbase facility previously bore a stated interest rate ranging from 10.5% to 11.5% between the quarter ended December 31, 2023 and the quarter ended March 31, 2025. The cumulative reduction of up to 450 basis points evidences Hut 8's sustained focus on lowering its cost of debt on Bitcoin-backed credit and broader cost of capital.
  • Approximately 3,300 BTC unencumbered, with a market value of approximately $260 million as of May 1, 2026, representing BTC released from the prior Coinbase facility net of BTC pledged as collateral under the new Facility. This helps advance the Company's objective of optimizing the role of Bitcoin on its balance sheet and increasing liquidity not subject to collateral covenants.
  • Continued collateral and borrower protections, including a limited-recourse structure under which recourse is limited to pledged Bitcoin collateral, a no-rehypothecation covenant on pledged Bitcoin, and fixed loan-to-value thresholds with no loan-to-value ratchet mechanism triggered by declines in the price of Bitcoin.