Hut 8 Mining (HUT.T) partnered with Galaxy Digital Holdings (GLXY.T) on a lending deal that will give Hut a 4% yield on 1,000 bitcoins and access to a $20 million revolving credit facility today, according to a press release.
The deal with Galaxy Digital is ultimately a good choice, given Galaxy’s recent spate of great luck, running in the wake of the Bitcoin bulls. Having jumped from a sub $5 stock to where they are now at $34.77 and a $2.9 billion market cap, and CEO Mike Novogratz’s name on the lips of everyone in the crypto-space.
“At Hut 8, our strategy is focused on growing shareholder value in every business decision we make. We opened a Bitcoin Yield Account and put 1,000 Bitcoin with Genesis mining earlier this year, and are excited to be adding Galaxy Digital to our roster of strategic and valuable partnerships. This partnership with Galaxy allows us to earn revenue from the significant Bitcoin on our balance sheet, minimize Hut 8’s Fiat expenses, and further our mission to hold and build our Bitcoin reserves, rather than sell,” said Jaime Leverton, CEO for Hut 8.
Galaxy Digital Holdings’ is the parent company behind Galaxy Digital, which handles everything from options trading to digital asset exchange for cryptoassets. They boast a team from multiple different industries, both technical and financial, including investing, portfolio management, capital markets, venture capital, asset management and blockchain tech. They have operations in trading, asset management, principal investments, investment banking and mining.
This time last year, Galaxy was among the few promising cryptoasset companies looking to break out. Earlier this year, their asset management unit bumped to $1.2 billion after launching new products, including a Bitcoin mutual fund with Canada’s CI Financial, after reporting earnings of $483 million for all of 2020. Hut 8 climbing about the Novogratz express only makes good sense.
“Galaxy Digital is keenly focused on providing bespoke, institutional solutions to our clients and counterparties. We are happy to extend our long-term relationship with Hut 8” said Luka Jankovic, head of lending at Galaxy Digital.
Let’s look at the chart.
Hut 8 is up $0.41 on the news and trading now at $7.19.