Hut 8 has secured a $1.07 billion revolving credit facility to finance development of its AI data-center pipeline and support the guarantees required before sites connect to the grid. The company closed the four-year agreement September 24 and disclosed it Monday. Its securities filing says nothing had been borrowed when the facility closed.

The credit line is held at Hut 8’s parent-company level, rather than by a single project. It allows the company to draw, repay and borrow again through September 2030 for working capital and other corporate needs. The agreement also permits up to $1.07 billion in letters of credit, but that is a sublimit within the same facility, not an additional pool of financing.

Hut 8 says it can use those letters of credit to meet collateral demands tied to site development, including interconnection deposits and obligations to utilities and equipment suppliers. Such guarantees let a bank stand behind a developer’s commitment without requiring the developer to post the same amount of cash. Grid-connection collateral has become a financing issue for data-center builders as utilities try to protect other customers from the cost of infrastructure built for projects that may not proceed.

The new line differs from the $7.5 billion of investment-grade, nonrecourse project financing Hut 8 says it has already secured for its River Bend and Beacon Point AI campuses. That debt funds development and construction at particular projects. The revolver gives the parent company liquidity it can use while sites are developed and before longer-term financing is arranged.

JPMorgan Chase serves as administrative and collateral agent for the facility, which was provided by 12 lenders. Citi, Goldman Sachs and Morgan Stanley were joint lead arrangers and bookrunners. For loans priced against the secured overnight financing rate, the initial margin is 1.75 percentage points; the agreement allows a margin from 1.5 to 2 percentage points depending on Hut 8’s ratio of debt to market capitalization.

The borrowing comes with constraints. Certain subsidiaries guarantee the debt, which is secured by a first-priority claim on substantially all assets of Hut 8 and the guarantors, subject to exclusions. Beginning with the quarter ending March 2027, the agreement requires minimum liquidity equal to 40 percent of commitments before a defined stabilization point and 25 percent afterward. It also restricts additional debt, liens and some corporate transactions, with qualifications set out in the filing.

The $1.07 billion is committed borrowing capacity, not spending already recorded on new data centers. In its August results, Hut 8 said River Bend and Beacon Point were under construction, with initial data halls targeted for the second and third quarters of 2027, respectively.

Sources: SEC filing, Hut 8, Hut 8 quarterly results

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By the Control Plane Editorial Team