Hut 8 Mining Corp. (TSX: HUT) announced that it has paid back its US$20M loan with Genesis Global Capital LLC (“Genesis”) as planned, in full. The repayment of this loan means an extra $U2.4M for Hut 8, driven by the savings from interest expenses of US$1.6M.
“Hut 8 initially took out this loan with Genesis in November 2019 when bitcoin was close to US$7,000. This loan provided Hut 8 additional leverage to significantly benefit our balance sheet, as our bitcoin (which now sits at 3012 Bitcoin on balance), has more than doubled its previous all time highs in 2017″ said Jimmy Vaiopoulos, Chief Financial Officer of Hut 8. “Hut 8 is now well capitalized. This full repayment of debt shows our position of strength in this fast growing industry.”
“The benefits of this loan and it’s repayment for Hut 8 signal the execution of our multi-pronged strategy to grow shareholder value,” said Jaime Leverton, CEO, Hut 8. “We look to reduce expenses without reducing the bitcoin on our balance sheet. We look for revenue diversification strategies to provide increased downside risk protection. This is what Hut 8 is about and what we intend to keep doing as we grow.”
As one of North America’s most innovative, oldest and highest installed capacity Canada-based Bitcoin miners, a summary of recent announcements are:
- As of February 17, 2021 Hut 8 has 3,012 bitcoin on its current balance sheet, 1,000 of these bitcoin are in a Genesis yield account generating a 4% yield paid out in USD.
- Hut 8 holds more self-mined bitcoin than any other publicly traded bitcoin miner in the world. This is a tremendous benefit as investors seek assets such as bitcoin as an inflationary hedge.
- Hut 8 attained its goal of 1.0E/H earlier last year and is on track for a 30%+ increase in energy capacity-maintains its position as leader in installed mining equipment and capacity.
- Hut 8 currently has 1,073 petahash per second (PH/s) installed with an anticipated increase to 1,300+ PH/s as new equipment comes online.
- Hut 8 ranked 11th out of 10,000 in the 2021 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year
- Hut 8 recently achieved its goal of Investment Banking research and earned a (BUY) rating from HC Wainwright investment bank. This is paramount in achieving our objectives of greater institutional investment and capital inflows.
- Hut 8 signed a Global and Canadian First: Bold Energy and Blockchain Innovation Play Through an Exclusive MOU with Global Energy Partner Validus Power Corp. with the intention to secure further capacity expansion and greater energy flexibility.