Hut 8 closes $1.07 billion non-dilutive bank credit facility

Hut 8 closed a $1.07 billion four-year senior secured revolving credit facility. The facility strengthens Hut 8's parent-level liquidity as the company pursues an investment-grade corporate profile. Hut 8 already has $7.5 billion of fully amortizing, non-recourse, investment-grade project financing. That financing funds development and construction at its River Bend and Beacon Point AI data center campuses. Borrowings carry a margin of SOFR plus 150 to 200 basis points, based on Hut 8's consolidated total debt-to-market-capitalization ratio. The initial margin was SOFR plus 175 basis points at closing. Hut 8 can draw and repay borrowings without prepayment penalties. The facility includes a $1.07 billion letter-of-credit sublimit for collateral requirements tied to site development. These requirements include interconnection deposits and obligations to utilities and equipment vendors. The sublimit reduces the need to post cash collateral. Hut 8 CFO Sean Glennan said the facility adds more than $1 billion of committed, non-dilutive bank liquidity at the parent level. Glennan said Hut 8 can fund projects through development while determining the optimal timing and structure for long-term, non-recourse financing as the projects de-risk. Glennan said Hut 8 is building a capital structure designed to scale with the business. He said the structure gives the company control over when, where and how it deploys capital. Glennan said that flexibility matters given the speed and capital intensity of AI infrastructure development. At publication, Hut shares were trading 1.36% lower at $95.50, according to Benzinga Pro data.