Hut 8 Announces Early Payoff of Outstanding Loan
Hut 8 Corp. (Nasdaq | TSX: HUT) announced the conversion of its subsidiary's ~$38 million outstanding loan with Anchorage Digital into common stock. The conversion was executed at $16.395 per share, representing a 51% premium to the 20-Day VWAP through September 26, 2024. This move strengthens Hut 8's financial position, reducing leverage and positioning the company to advance discussions with potential counterparties and execute on the development of next-generation mining and AI data centers.
Anchorage Digital's CEO, Nathan McCauley, expressed confidence in Hut 8's ability to innovate and adapt in an evolving market. Hut 8's CEO, Asher Genoot, acknowledged Anchorage Digital's instrumental role in the company's growth and emphasized their focus on disciplined and creative capital deployment.
Hut 8 Corp. (Nasdaq | TSX: HUT) ha annunciato la conversione del prestito in sospeso di circa 38 milioni di dollari della sua sussidiaria in azioni ordinarie. La conversione è stata effettuata a 16,395 dollari per azione, rappresentando un premio del 51% rispetto al VWAP a 20 giorni fino al 26 settembre 2024. Questa mossa rafforza la posizione finanziaria di Hut 8, riducendo la leva finanziaria e posizionando l'azienda per avanzare nelle discussioni con potenziali controparti e realizzare lo sviluppo di centri dati per il mining di nuova generazione e IA.
Il CEO di Anchorage Digital, Nathan McCauley, ha espresso fiducia nella capacità di Hut 8 di innovare e adattarsi a un mercato in evoluzione. Il CEO di Hut 8, Asher Genoot, ha riconosciuto il ruolo strumentale di Anchorage Digital nella crescita dell'azienda e ha sottolineato il loro focus su un impiego del capitale disciplinato e creativo.
Hut 8 Corp. (Nasdaq | TSX: HUT) anunció la conversión del préstamo pendiente de aproximadamente 38 millones de dólares de su filial en acciones ordinarias. La conversión se realizó a 16,395 dólares por acción, representando una prima del 51% sobre el VWAP de 20 días hasta el 26 de septiembre de 2024. Este movimiento fortalece la posición financiera de Hut 8, reduciendo el apalancamiento y posicionando a la empresa para avanzar en las discusiones con posibles contrapartes y ejecutar el desarrollo de centros de datos de minería e IA de nueva generación.
El CEO de Anchorage Digital, Nathan McCauley, expresó confianza en la capacidad de Hut 8 para innovar y adaptarse a un mercado en evolución. El CEO de Hut 8, Asher Genoot, reconoció el papel fundamental de Anchorage Digital en el crecimiento de la empresa y enfatizó su enfoque en un despliegue de capital disciplinado y creativo.
Hut 8 Corp. (Nasdaq | TSX: HUT)는 자회사가 보유한 약 3,800만 달러의 미지급 대출을 Anchorage Digital의 보통주로 전환한다고 발표했습니다. 이 전환은 주당 16.395달러로 이루어졌으며, 이는 2024년 9월 26일까지의 20일 VWAP에 대해 51%의 프리미엄을 나타냅니다. 이러한 움직임은 Hut 8의 재무 건전성을 강화하고 레버리지를 줄이며 잠재적인 거래 상대방과의 논의를 진행하고 차세대 채굴 및 AI 데이터 센터 개발을 추진할 수 있는 회사의 입지를 다집니다.
Anchorage Digital의 CEO인 Nathan McCauley는 발전하는 시장에서 Hut 8이 혁신하고 적응할 수 있는 능력에 대한 신뢰를 표명했습니다. Hut 8의 CEO인 Asher Genoot는 Anchorage Digital이 회사 성장에 중요한 역할을 했음을 인정하고, 자본 투입에서의 규율 있고 창의적인 접근에 집중하고 있음을 강조했습니다.
Hut 8 Corp. (Nasdaq | TSX: HUT) a annoncé la conversion du prêt en cours d'environ 38 millions de dollars de sa filiale en actions ordinaires. La conversion a été réalisée à 16,395 dollars par action, représentant une prime de 51% par rapport au VWAP sur 20 jours jusqu'au 26 septembre 2024. Ce mouvement renforce la position financière de Hut 8, réduisant l'effet de levier et positionnant la société pour avancer dans les discussions avec des contreparties potentielles et exécuter le développement de centres de données miniers et d'IA de nouvelle génération.
Le PDG d'Anchorage Digital, Nathan McCauley, a exprimé sa confiance dans la capacité de Hut 8 à innover et à s'adapter à un marché en évolution. Le PDG de Hut 8, Asher Genoot, a reconnu le rôle instrumental d'Anchorage Digital dans la croissance de l'entreprise et a souligné leur concentration sur un déploiement de capital discipliné et créatif.
Hut 8 Corp. (Nasdaq | TSX: HUT) gab die Umwandlung des ausstehenden Darlehens von etwa 38 Millionen Dollar seiner Tochtergesellschaft in Stammaktien bekannt. Die Umwandlung wurde zu 16,395 Dollar pro Aktie ausgeführt, was einer 51%igen Prämie zum 20-Tage-VWAP bis zum 26. September 2024 entspricht. Dieser Schritt stärkt die finanzielle Position von Hut 8, verringert die Verschuldung und positioniert das Unternehmen, um die Gespräche mit potenziellen Geschäftspartnern voranzutreiben und die Entwicklung von neuen Mining- und KI-Datenzentren zu realisieren.
Der CEO von Anchorage Digital, Nathan McCauley, äußerte Vertrauen in die Fähigkeit von Hut 8, in einem sich entwickelnden Markt zu innovieren und sich anzupassen. Der CEO von Hut 8, Asher Genoot, erkannte die wesentliche Rolle von Anchorage Digital beim Wachstum des Unternehmens an und betonte den Fokus auf eine disziplinierte und kreative Kapitalverwendung.
- Conversion of ~$38 million loan to equity, strengthening the balance sheet
- 51% premium on share price for conversion, indicating investor confidence
- Reduced leverage, improving financial flexibility
- Enhanced positioning for discussions with prospective counterparties
- Improved ability to execute on next-generation mining and AI data centers
- Potential dilution of existing shareholders due to new share issuance
Insights
The early payoff of Hut 8's
This transaction provides Hut 8 with increased financial flexibility to pursue growth opportunities in AI and mining infrastructure. The improved capital structure may enhance the company's ability to secure partnerships and execute on its diversification strategy. However, investors should note the dilutive effect of issuing new shares, which may impact earnings per share in the short term.
Overall, this debt-to-equity conversion positions Hut 8 more favorably in the competitive landscape of Bitcoin mining and AI infrastructure, potentially leading to improved valuation multiples and investor sentiment in the medium to long term.
Hut 8's strategic move to convert debt to equity demonstrates adaptability in the ever-changing cryptocurrency market. By eliminating the
The transaction also aligns Anchorage Digital's interests more closely with Hut 8's shareholders, potentially fostering a stronger long-term partnership. This could be beneficial as Hut 8 explores opportunities in AI and next-generation mining facilities, areas that require significant capital investment and technological expertise.
Investors should view this development as a sign of Hut 8's commitment to maintaining a robust financial position amidst market volatility. The company's focus on diversification and innovation, coupled with a stronger balance sheet, may provide a competitive edge in scaling operations and capitalizing on emerging opportunities in the digital asset ecosystem.
Anchorage Digital converted entire ~
Strengthens Company’s financial position as it advances pipeline of AI and mining infrastructure opportunities
MIAMI, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, today announced the conversion of the entire ~
"Hut 8 stands out for its conviction to innovation — it's a key reason that we originally backed them with a loan, and it's the same reason we've now converted that debt to equity," said Nathan McCauley, Co-Founder and CEO of Anchorage Digital. "In an evolving market, Hut 8 has proven that they can adapt to meet the moment and come out stronger — for the benefit of the company and the digital asset ecosystem at large. We value that kind of resilience on our balance sheet, and our new ownership stake makes that clear."
“Our relationship with Anchorage Digital has been instrumental to our growth,” said Asher Genoot, CEO of Hut 8. “We are grateful for their continued support as we scale and diversify our business while maintaining an unwavering focus on disciplined and creative capital deployment.
“With a strengthened balance sheet and decreased leverage, we believe we are even better positioned to advance discussions with prospective counterparties and execute on the development of next-generation mining and AI data centers.”
Key Transaction Terms
Anchorage Digital has converted the ~
Upon completion of the Conversion, the outstanding loan and all other related obligations of the Company and its subsidiaries have been satisfied.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Additional information, including the Debt Repayment Agreement, is available in the Form 8-K that the Company will file with the Securities and Exchange Commission.
Upcoming Conferences & Events
- October 7–9, 2024: Yotta 2024
- October 15, 2024: USC Marshall Energy Business Summit 2024
- November 13–14, 2024: Cantor Fitzgerald Crypto, Digital Assets & AI Infrastructure Conference 2024
- November 19, 2024: Craig-Hallum 15th Annual Alpha Select Conference
- November 19, 2024: Benzinga Future of Digital Assets Conference 2024
About Hut 8
Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp. has a portfolio comprising twenty sites: ten Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, four power generation assets in Ontario, and one newly announced site in the Texas Panhandle. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.
Cautionary Note Regarding Forward–Looking Information
This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. Specifically, such forward-looking information included in this press release includes statements relating to the Company’s advancement of its AI and mining infrastructure pipeline and the Company’s ability to continue scaling and diversifying its business while maintaining an unwavering focus on disciplined and creative capital deployment.
Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID19 pandemic, climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to mining sites and other risks related to the digital asset mining and data center business. For a complete list of the factors that could affect Hut 8, please see the “Risk Factors” section of Hut 8’s Transition Report on Form 10-K, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov.
Hut 8 Corp. Investor Relations
Sue Ennis
ir@hut8.com
Hut 8 Corp. Media Relations
media@hut8.com
FAQ
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