Hut 8 Secures $1.07b Line of Credit

Dow Jones
Sep 28
 
 

Hut 8 has secured a $1.07 billion, four-year senior secured revolving credit facility to expand parent-level liquidity and support early-stage development across its artificial intelligence data center pipeline.

The energy infrastructure platform on Monday said the facility is led by a syndicate of 12 banks led by J.P. Morgan and carries an initial borrowing margin of secured overnight financing rate plus 175 basis points.

The money can be drawn as needed and repaid without prepayment penalties.

Hut 8 said the letter-of-credit sublimit supports the company's collateral requirements for site development projects, reducing the need to post cash collateral.

Chief Financial Officer Sean Glennan said the move also helps provide flexibility in how the company deploys capital while scaling its operations.

"This facility adds more than $1 billion of committed, non-dilutive bank liquidity at the parent level, giving us the ability to fund projects through development while we determine the optimal timing and structure for long-term, non-recourse financing as they de-risk," Glennan added.

 
 

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