Hut 8 Mining, also referred to as HUT, has collected a loan of about 50 million US dollars from Coinbase (COIN). The funds should help fund it’s operations.
According to a press release on Monday, HUT looks to close a highly anticipated merger with US Bitcoin Corp using the funds. Hut 8 was founded by Andrew Kiguel on June 9, 2011 and has its headquarters in Toronto, Canada.
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The name, Hut 8, draws its inspiration from a building’s name at Bletchley Park, where Alan Turing built the Bombe.
The Bombe was a machine that could quickly crack the Enigma code and intercept enemy communications during World War II.
The company mines bitcoin and owns industry-cale operations in Alberta, Canada. Hut 8 provides investors on the platform with first-hand exposure to bitcoin through holding its bitcoin balance and by their bitcoin mining operation.
Coinbase has been leaning into the institutional market, with its main plans being to become the custodian for BlackRock’s highly-publicized bitcoin exchange-traded fund, pending when it gets regulatory green light.
In March, Coinbase acquired One River, an institutional digital asset manager.
Hut 8’s most recent credit facility is comprises a $15 million term loan “which is expected to be funded at or shortly following closing,” an option to draw an additional $20 million between one and two months later, and another $15 million within 15 business days after completing the merger with USBTC, a press release said.
Hut 8 shares did not make any significant move in early Monday morning trading.
The U.S. Securities and Exchange Commission, SEC, has accused Coinbase of operating an unregistered securities exchange in one of two blockbuster lawsuits that were filed recently.
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Some of Coinbase’s institutional products have come under scrutiny from regulators who have been taking a closer look at the crypto industry after the collapse of crypto exchange FTX.
The other lawsuit is against Binance, another cryptocurrency exchange.
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