Canadian listed mining company Hut 8 Mining Corp. announced a strategic cooperation with Coinbase Credit, expanding its Bitcoin-backed credit line to $130 million, with terms including a 9% fixed rate and optimized collateral structure. This highlights the trend of institutional players obtaining non-dilutive funding through asset collateralization. Encouraged by this, Coinbase stock surged over 9% in a single day to $335, in stark contrast to competitor Circle - which was given a neutral rating by analysts due to expected USDC market share decline, causing its stock to drop 6%.
Hut 8 Expands Bitcoin-Backed Credit Line to $130 Million with Coinbase
Hut 8 Mining Corp. received significant funding injection, doubling its Bitcoin-backed credit line with Coinbase Credit to $130 million. The expanded financing plan will continue until July 2026, with optimized terms, including a reduced 9% fixed rate and enhanced collateral structure.
This strategic financing initiative enables the listed company to accelerate its Bitcoin mining and high-performance computing business development plans. By pledging Bitcoin assets instead of equity financing, Hut 8 maintains shareholder rights while obtaining non-dilutive funding - a mainstream approach among institutional cryptocurrency players.
Coinbase Soars While Circle Faces Market Share Pressure
Coinbase stock surged over 9% to $335, in sharp contrast to Circle's 6% decline, after Compass Point issued a neutral rating. The research firm set a target price of $205 for Circle, noting that its USDC stablecoin market share is shrinking - expected to drop from 34% in 2022 to 27% in 2025 due to intensifying competition.
Despite analysts acknowledging USDC's advantages in technology and liquidity, Circle's revenue model remains vulnerable to Federal Reserve policy changes. The issuer currently benefits from a high-interest environment but also faces potential risks of monetary easing.
Ethereum Price Volatility Sparks Concerns and Optimism with Divergent Analyst Predictions
In a generally declining cryptocurrency market, Ethereum price plummeted to $2,130 on Coinbase, momentarily dragging Bitcoin below $100,000. This sharp pullback triggered short-term panic, but analysts remain optimistic about ETH's long-term trajectory, with one analyst setting a target price of $6,000.
Technical analyst @CryptoWaveV, applying Elliott Wave Theory, identified a completed A-wave correction, with ETH finding support between $2,134 and $1,957. Predictions suggest a potential B-wave rebound to $2,792, followed by a final C-wave drop to $1,706, after which a sustained upward trend might begin.
Market sentiment appears divided between immediate concerns about the decline and growing institutional confidence in Ethereum's fundamentals. The $6,000 prediction reflects accumulated bullish factors, including network upgrades and ETF speculation.
