It appears that Hut 8 Mining (TSX: HUT) is attempting to use a digital currency as its main means of conducting financial transactions. The company this morning announced that it has entered into a lending arrangement with that of Galaxy Digital (TSX: GLXY) that will enable the company to retain its digital holdings.
The arrangement, referred to as a “tailored lending deal,” will see Hut 8 place 1,000 bitcoin into a bitcoin yield account, from which it will earn a 4% yield on the currency. Furthermore, in doing so the company is able to access a US$20 million revolving credit facility, enabling the company to access cash while not being required to sell its digital holdings.
The transaction furthers the companies goal of holding, and building, its bitcoin reserves, while still enabling it to conduct certain transactions in fiat currency as required.
Hut 8 Mining last traded at $6.78 on the TSX.
Information for this briefing was found via Sedar and Hut 8 Mining Corp. 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.
