Toronto, Ontario–(Newsfile Corp. – July 13, 2020) – 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 renegotiated key terms with Genesis Global Capital, LLC (“Lender”) for its US$20 million facility including the interest rate and bitcoin collateral, saving Hut 8 up to $500,000 per year in interest costs.
The interest rate on the loan has decreased from 9.85% to 8.00% per annum for the full balance of the loan and the bitcoin collateral required has increased from 85% of the loan value to 95%. Additionally, if the price of bitcoin drops below US$6,500, the bitcoin collateral will automatically change to 80% of the loan value and the interest rate adjusts to 10.00% per annum until the bitcoin price once again increases above US$6,500. Lastly, the loan will continue indefinitely with Lender being able to call the loan with five months’ notice, while Hut 8 will have the option to repay the loan with one month’s notice, with no prepayment penalty.
“The new terms that we’ve renegotiated indicate maturation of the cryptocurrency industry, with the lender offering a lower interest rate based on bitcoin being used as collateral,” said Jimmy Vaiopoulos, Interim Chief Executive Officer of Hut 8. “The new deal will see us save up to $500,000 per year while providing a larger collateral buffer should there be a downturn in the price of bitcoin.”
ABOUT HUT 8 MINING CORP.
Hut 8 is a bitcoin mining company with industrial scale operations in Canada. Hut 8 creates value for investors through low production costs and appreciation of its bitcoin inventory. The company provides investors with direct exposure to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. Investors avoid the need to create online wallets, wire money offshore, and safely store their bitcoin.
The Company’s common shares are listed under the symbol “HUT” on the TSX and as “HUTMF” on the OTCQX Exchange.
Key investment highlights and FAQ’s: https://www.hut8mining.com/investors.
Hut 8 Corporate Contact:
Interim Chief Executive Officer
Tel: (647) 256-1992
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be…