Hut 8, a Bitcoin miner, gets loans up to $50M from Coinbase.

Hut 8 Mining has obtained loans of up to $50 million from Coinbase Credit to finance its operations, which currently includes finalizing a highly anticipated merger with its peer US Bitcoin Corp. This was announced in a press release on Monday.

Coinbase has been focusing on the institutional market, especially with its plan to serve as the custodian for BlackRock’s much-publicized Bitcoin exchange-traded fund, subject to regulatory approval. In March, Coinbase acquired One River, an institutional digital asset manager.

According to the press release, Hut 8’s new credit facility consists of a $15 million term loan, which is expected to be funded shortly after the closing of the merger, an option to draw an extra $20 million between one and two months later, and another $15 million within 15 business days after the completion of the merger with USBTC.

Shares of Hut 8 did not experience significant movement early on Monday.

One of the two blockbuster lawsuits recently filed by the U.S. Securities and Exchange Commission is against Coinbase, alleging that it is operating an unregistered securities exchange, while the other is against Binance.

According to the 2022 annual earnings report of Coinbase, Coinbase Credit is one of the crypto exchange’s subsidiaries. In a prior filing, it was referred to as a “finance subsidiary.”

Read more: Hut 8 First-Quarter Revenue Drops 64% as Bitcoin Mining Difficulties Bite

Edited by Nelson Wang.

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