Hut 8 Doubles Down: $200M Coinbase Credit Line Fuels Aggressive AI Expansion

Hut 8 just turbocharged its war chest. The mining heavyweight secured a massive $200 million credit facility from Coinbase—doubling its previous firepower in a single move.

The AI Arms Race Gets Real

This isn't about buying more rigs. The capital injection directly fuels Hut 8's pivot into artificial intelligence. Think high-performance computing for machine learning, not just solving blockchain puzzles. The company's betting its future on data centers that crunch AI models, a sector where demand is exploding and traditional miners are scrambling to adapt.

Why $200 Million Matters

That number isn't arbitrary. It signals deep institutional confidence and provides serious operational runway. In a volatile crypto market, access to stable, low-cost capital separates the survivors from the stranded. Hut 8 can now scale its AI infrastructure aggressively without selling mined assets at the worst possible time—a classic move that burns shareholders while supposedly saving the company.

The play is clear: leverage mining's energy expertise and existing infrastructure to build a parallel, high-margin AI business. It's a hedge against Bitcoin's whims and a grab for the next tech gold rush.

One cynical Wall Street take? It's a brilliant way to borrow against crypto's future to fund a pivot into the *actual* future, just in case the bankers are right about blockchain being a solution in search of a problem. Either way, Hut 8 isn't waiting to find out.

Hut 8’s $7B AI Deal With Fluidstack Powers Major Data Center Push

The credit increase follows a landmark $7 billion agreement signed in December with AI cloud provider Fluidstack.

Under the deal, Hut 8 will supply 245 megawatts of energy over 15 years to power a large-scale AI data center, marking one of the largest partnerships between a crypto-native firm and an AI infrastructure company.

Hut 8’s strategic pivot has been rewarded by markets. The company’s shares have risen more than 134% over the past year and are trading around $51, according to Yahoo Finance.

The rally sets Hut 8 apart from much of the mining sector, which has faced sustained pressure since the April 2024 bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC.

Beyond AI, Hut 8 has continued to expand its Bitcoin mining and treasury strategy.

Through its majority ownership of American Bitcoin, a mining and crypto treasury company, the firm has increased exposure to Bitcoin at a time when many peers have been forced to sell holdings to cover operating costs.

JUST IN: #Bitcoin mining company Hut 8 just announced it partnered with Google for financial backing on a 15-year lease.

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Industry-wide challenges have included higher energy prices and macroeconomic uncertainty, as well as rising equipment costs linked to US tariffs introduced under President Donald Trump.

The measures have heightened concerns over supply chains, particularly given China’s role as a major producer of application-specific integrated circuits used in Bitcoin mining.

Despite those headwinds, Hut 8 remains one of the largest corporate Bitcoin holders globally.

The company ranks ninth among Bitcoin treasury firms, with 13,696 BTC worth more than $1.2 billion, according to BitcoinTreasuries.Net.

American Bitcoin ranks twentieth, holding 5,098 BTC valued at roughly $458 million.

Bitmain Slashes Bitcoin Miner Prices as Industry Pressure Mounts

As reported, Bitmain is cutting prices aggressively across multiple generations of Bitcoin mining hardware as pressure builds across the mining sector, according to recent promotional campaigns and internal price lists circulated to customers.

One promotion dated Dec. 23 offered a package of four S19 XP+ Hydro units paired with an ANTRACK V2 container, implying an effective price of roughly $4 per terahash for the 19 J/TH machines.

Shipments for that batch are scheduled to begin in January 2026, suggesting Bitmain is willing to lock in low pricing well ahead of delivery.

Meanwhile, Bitcoin’s network hashrate fell 4% in the month through Dec. 15, a development that could set the stage for stronger price performance in the months ahead, according to analysts at VanEck.

“When hash rate compression persists over longer periods, positive forward returns tend to occur more often and with greater magnitude,” the analysts wrote.