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Bitcoin miner Hut 8 has paid off the approximately $38 million balance of its loan from Anchorage Digital through a stock conversion. Anchorage Digital converted the debt to common stock at $16.395 per share.
The converted share price represents a 51% premium on the 20-day volume-weighted average price through Sept. 26. Hut 8 stock opened at $12.30 on Oct. 1.
<h2 id="getting-the-books-ready-for-ai">Getting the books ready for AI</h2>
According to the trade publication The Miner Mag, Hut 8 used 21,000 mining machines as collateral when it restructured the Anchorage Digital loan in February 2023. The company still carries around $290 million in debt.
Hut 8’s remaining debt <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-miner-hut-8-150m-ai-investment" rel="noopener noreferrer nofollow" target="null" text="null" title="null">includes a $150-million convertible</a> note agreed in June with Coatue Management and earmarked for the miner’s expansion into the artificial intelligence computing capacity market.
Hut 8 CEO Asher Genoot <a data-ct-non-breakable="null" href="https://www.globenewswire.com/news-release/2024/10/01/2955905/0/en/Hut-8-Announces-Early-Payoff-of-Outstanding-Loan.html" rel="noopener noreferrer nofollow" target="null" text="null" title="null">said</a> of the Anchorage Digital repayment:
<blockquote>
 “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.”
</blockquote> <img alt="Hut 8 pays off $38M Anchorage Digital loan as it looks at AI expansion" name="" src="https://s3.cointelegraph.com/uploads/2024-10/019249a7-7c48-7a52-9bd2-798b2fb81a13">
<blockquote>
 Source: The Miner Mag
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-miner-hut8-self-mining-plans-analysis-btc-halving-benchmark" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Hut 8&nbsp;‘self-mining plans’ make it competitive post-halving: Benchmark</a>
<h3 id="hut-8-is-well-positioned-for-expansion">Hut 8 is well-positioned for expansion</h3>
Hut 8 announced the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hut-8-gpu-service-program-ai-developers" rel="noopener noreferrer nofollow" target="null" text="null" title="null">launch of its GPU-as-a-service</a> program on Sept. 26 in conjunction with AI developers AdvizeX. It offers Hewlett Packard Enterprise supercomputers powered by a cluster of 1,000 Nvidia H100 GPUs.
The rise of AI and the Bitcoin halving has had a profound impact on the crypto mining industry, leading to a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-mining-firms-artificial-intelligence-ai-hpc-revenue-boost" rel="noopener noreferrer nofollow" target="null" text="null" title="null">shift of some mining power</a> to AI and other high-performance computing. Hut 8 has <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/why-crypto-miners-are-ditching-debt-for-equity" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/news/why-crypto-miners-are-ditching-debt-for-equity">followed an industry </a><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/why-crypto-miners-are-ditching-debt-for-equity" rel="noopener noreferrer nofollow" target="null" text="null" title="null">trend</a> in improving its debt-to-equity ratio, thus lowering the cost of debt servicing and raising creditworthiness.
Meanwhile, the Bitcoin network hashrate and network difficulty <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-network-hashrate-reaches-new-all-time-high" rel="noopener noreferrer nofollow" target="null" text="null" title="null">hit all-time highs in</a> early September.
Miami-based Hut 8 has 10 Bitcoin mining facilities in Alberta, New York and Texas. It also has five high-performance computing data centers in the Canadian provinces of British Columbia and Ontario and four power generation facilities in Ontario.
Hut 8 <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hut-8-closes-bitcoin-mining-site-citing-surging-energy-costs" rel="noopener noreferrer nofollow" target="null" text="null" title="null">closed a facility in</a> Drumheller, Alberta, in March, citing rising energy costs and outages. It plans to open a power generation asset in Texas.
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ai-more-power-hungry-bitcoin-profits-pose-risks-bitcoin-miners/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">&nbsp;AI may already use more power than Bitcoin — and it threatens Bitcoin mining</a>
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Hut 8 pays off $38M Anchorage Digital loan as it looks at AI expansion

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