$1.07B credit facility for AI expansion lifts Hut 8 stock toward $99.17 resistance

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Hut 8 jumps 3.72% to $96.27 today

Highlights

Hut 8 Corp. secured a $1.07 billion four-year senior secured revolving credit facility to accelerate AI data center expansion.
The credit facility directly enhances parent-level liquidity and supports the company’s financial flexibility for growth initiatives.
HUT/USD stock trades below short- and medium-term moving averages with bearish momentum, projected range $89.46 to $102.68 over several days.

Liquidity boost as credit facility fuels AI expansion

Hut 8 Corp. has secured a $1.07 billion four-year senior secured revolving credit facility to accelerate its AI data center projects and reinforce parent-level liquidity, according to PR Newswire. This substantial capital infusion directly enhances the company's funding flexibility, enabling more aggressive expansion and positioning Hut 8 to capitalize on rising demand for AI infrastructure. Improved liquidity at the parent level also strengthens Hut 8's financial profile, supporting market optimism surrounding its growth strategy.

Bearish momentum as price nears oversold technicals

On the technical front, HUT is trading below the MA-20 at $97.71 and the MA-50 at $100.45 on the hourly timeframe, while price remains well above the MA-200 at $79.32 on the daily chart. The Ichimoku Kijun at $99.17 serves as immediate resistance. Momentum indicators are firmly bearish: MACD and ADX both show a sell bias, and RSI has dropped to oversold territory at 29.88. CCI and Stochastic RSI confirm oversold readings, while Bull/Bear Power also signals seller dominance on intraday timeframes. AO supports the ongoing downward momentum despite the intraday rebound.

Downside risk prevails as range-bound consolidation expected

Looking ahead, the expected trading range over the next several days is $89.46 to $102.68. The base scenario is for HUT to consolidate within this range, with a 54% probability assigned to continued downside pressure and a 46% likelihood of a move higher. A breakout above the $99.17 Ichimoku Kijun resistance could propel price towards the upper bound, while failure to hold support near $89.46 risks further downside extension.

Viktoras Karapetjanc, expert at Traders Union, sees Hut 8's $1.07 billion revolving credit facility as a strong catalyst for long-term growth. He believes this step will bolster investor confidence and support new AI infrastructure projects. Despite current bearish momentum and intraday risks, macro and fundamental drivers remain in focus. "This fresh liquidity gives Hut 8 a significant strategic edge, and I remain constructive as long as the price holds above daily support levels."

Previously it was reported that Hut 8 secured a major credit facility, expanding its financial flexibility amid ongoing market weakness. The current update adds that, as downside pressures persist and short-term technicals remain bearish, traders should monitor for a breakout above $99.17 or a breakdown below $89.46 as signals for the next price direction.

Source of Data: HUT Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.