Originally published on: October 01, 2024
Bitcoin mining company Hut 8 has successfully paid off its $38 million loan from Anchorage Digital by converting the debt into common stock at $16.395 per share. This move represents a 51% premium on the 20-day volume-weighted average price leading up to the conversion date, with Hut 8’s stock opening at $12.30 on Oct. 1.
Back in February, Hut 8 used 21,000 mining machines as collateral to restructure the Anchorage Digital loan. Despite clearing this debt, the company still holds around $290 million in outstanding liabilities.
Hut 8’s remaining debt includes a $150 million convertible note from Coatue Management, agreed upon in June, aimed at bolstering the company’s expansion into the artificial intelligence computing capacity market.
CEO Asher Genoot lauded the successful repayment of the Anchorage Digital loan, signaling the company’s commitment to financial stability and growth.
Recently, Hut 8 unveiled its GPU-as-a-service program in partnership with AI developers AdvizeX. The program offers Hewlett Packard Enterprise supercomputers equipped with a cluster of 1,000 Nvidia H100 GPUs, tapping into the rising trend of integrating AI with high-performance computing.
As the crypto mining industry undergoes changes due to the rise of AI and the Bitcoin halving, Hut 8 has strategically improved its debt-to-equity ratio to enhance creditworthiness and reduce debt servicing costs.
With the Bitcoin network hashrate and difficulty reaching record levels in early September, Hut 8 continues to expand its presence, operating 10 Bitcoin mining facilities across Alberta, New York, and Texas, in addition to high-performance computing data centers in British Columbia and Ontario, and power generation facilities in Ontario.
Despite closing a facility in Drumheller, Alberta, earlier this year due to energy costs and outages, Hut 8 plans to open a new power generation asset in Texas, underscoring its continued growth in the ever-evolving crypto mining landscape.
