Hut 8 Mining Announces US$65 Million ATM Financing Months After US$173 Million Raise

Hut 8 Mining (TSX: HUT) last night attempted to quietly announce that it will be conducting an at the market offering. Funds reportedly are to be used to fund ongoing operations and working capital requirements.

Under the terms of the financing, the company is to sell up to US$65 million worth of common shares on the open market. Shares to be sold under the offering will be sold exclusively on the Nasdaq Capital Markets, with the ATM not to include the Toronto Stock Exchange. The sale of the firms shares will be conducted by HC Wainright & Co.

Shares under the offering are to be sold at prevailing market prices. Proceeds from the sale are to be used for corporate purposes, including the repayment of indebtedness.

Details on timing of the at the market financing were not explicitly stated, however it is being conducted under a prospectus supplement dated February 11, 2022 that the firm has yet to file.

The financing follows a US$172.6 million financing conducted by the company in September 2021, at a price of US$8.55 per share, as well as a three year US$30 million senior secured equipment financing term loan the company entered into on December 30, which bears interest at a rate of 9.5% per annum.

The firm reported a cash position of $223.2 million as of September 30, 2021.

Hut 8 Mining last traded at $9.08 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply