Hut 8 Corp., a leading Bitcoin miner in North America, recently announced that Anchorage Digital has converted the remaining $38 million of its outstanding loan into common shares.
The conversion was completed at $16.395 per share, providing a 51% premium over the 20-day volume-weighted average price through Sept. 26.
This move enhances Hut 8’s financial flexibility as it focuses on new growth opportunities in AI and mining infrastructure.
The loan conversion eliminates all obligations related to the loan, giving Hut 8 more flexibility as it expands into high-performance computing and AI hosting. More details will be filed in a forthcoming Form 8-K with the SEC.
The loan, originally from February 2023, was secured by 21,000 Bitcoin mining machines as collateral. Initially carrying a 14% interest rate, it was later reduced to 9% by June.
Originally set to mature in five years, the equity conversion has allowed Hut 8 to clear the remaining balance early, reducing its debt further.
Diversification
Following the debt conversion, Hut 8 still has around $290 million in debt, including $150 million raised in June 2024 for its AI data center expansion.
Despite this, Hut 8’s decreased leverage and focus on AI hosting and mining infrastructure position it well to negotiate with partners and advance key projects.
Expanding beyond crypto mining, Hut 8 recently launched a GPU-as-a-service program with Nvidia H100 GPUs in partnership with AI developers.
The company’s long-term strategy aims to diversify revenue streams by integrating AI infrastructure, enhancing resilience in the digital asset space.
