The Hut 8 revolving credit facility gives the energy-infrastructure company $1.07 billion of four-year, senior secured borrowing capacity for development, working capital and letter-of-credit needs.
Hut 8 (NASDAQ: HUT) closed the facility with a 12-lender syndicate. The initial drawn margin is the secured overnight financing rate plus 1.75 percentage points and can range from 1.50 to 2.00 points based on its debt-to-market-capitalization ratio.
Hut 8 Revolving Credit Facility Adds Parent-Level Liquidity
Borrowings can be drawn and repaid without prepayment penalties, subject to customary conditions, according to the company’s official SEC-filed financing announcement.
The facility is available at the parent level, making it different from the $7.5 billion of non-recourse, investment-grade project financing that Hut 8 previously arranged for its River Bend and Beacon Point artificial-intelligence data-center campuses.
That distinction gives the company flexibility to fund early development before moving mature projects into longer-term financing. It also means amounts drawn under the revolver create corporate obligations rather than debt isolated entirely within an individual project.
Letter-of-Credit Capacity Can Reduce Cash Collateral
The agreement includes a $1.07 billion letter-of-credit sublimit. Hut 8 can use letters of credit for interconnection deposits and obligations to utilities and equipment suppliers, potentially reducing the cash that must be posted during site development.
The headline amount is committed capacity, not cash already borrowed or revenue. Interest expense will depend on actual drawings, prevailing SOFR and the margin determined by Hut 8’s leverage-related ratio.
Undrawn capacity may still carry commitment fees under the credit agreement, adding a smaller cost even before funds are borrowed.
JPMorgan acted as lead-left arranger and bookrunner and serves as administrative agent. Citi, Goldman Sachs and Morgan Stanley were joint lead arrangers and bookrunners.
Hut 8 is expanding from bitcoin-related computing into power and AI infrastructure, a strategy that requires substantial capital before data centers begin generating contracted cash flow. Future filings will show how much of the revolver is drawn, whether projects move into non-recourse structures and how the additional liquidity affects consolidated leverage.
