Hut 8 (NASDAQ: HUT) Corp. (Nasdaq, TSX: HUT) announced the completion of a $1.07 billion senior secured revolving credit facility with a four-year maturity. This facility is intended to enhance liquidity at the parent company level and provide flexible funding throughout the development phases of its energy and digital infrastructure projects.
The credit line includes a $1.07 billion letter-of-credit sublimit designed to meet collateral requirements related to site development, such as interconnection deposits and commitments to utilities and equipment suppliers, thereby reducing the need for cash collateral.
Borrowings under the facility carry a drawn margin that varies between SOFR plus 150 and 200 basis points, depending on Hut 8’s consolidated total debt-to-market-capitalization ratio. At closing, the initial margin was set at SOFR plus 175 basis points.
This new financing builds on Hut 8’s prior successful capital market activities, including $7.5 billion in fully amortizing, non-recourse project financing used to support the development and construction of its River Bend and Beacon Point AI data center campuses in Texas.