Hut 8 secures $1.07 billion revolver for AI data-center buildout

Hut 8 disclosed Monday that it had closed a $1.07 billion, four-year senior secured revolving credit facility, giving the bitcoin-mining group a large parent-level liquidity backstop as it builds capital-intensive artificial-intelligence data centers. The agreement was signed September 24 and announced September 28. No borrowings were outstanding at closing, so the headline amount is committed capacity, not cash already spent or new revenue.

The financing matters to crypto investors because Hut 8 still combines digital-asset exposure and ASIC compute with a rapidly expanding data-center business. The new bank line shifts part of its financing toolkit away from bitcoin-backed borrowing while placing broad corporate assets behind the facility.

What the revolver provides

The SEC filing says Hut 8 can borrow, repay and reborrow through the fourth anniversary of the September 24 closing. Proceeds may support working capital and general corporate purposes. Term SOFR loans initially carry a margin of 1.75 percentage points; after the first compliance certificate for the quarter ending December 31, the margin can range from 1.50 to 2.00 percentage points based on consolidated debt relative to market capitalization. The benchmark itself will move, meaning the all-in interest rate is not fixed by Monday’s disclosure.

The facility also has a letter-of-credit sublimit of $1.07 billion. That is inside the revolver, not another $1.07 billion of financing. Hut 8 said letters of credit can support interconnection deposits and obligations to utilities and equipment vendors, reducing the need to post the same amount as cash collateral while sites are being developed.

JPMorgan Chase is administrative and collateral agent. The obligations are guaranteed by certain restricted subsidiaries that are, or later become, loan parties and are secured by first-priority liens on substantially all assets of Hut 8 and the guarantors, subject to exclusions. Those terms make “non-dilutive” accurate in the narrow sense that drawing the line does not itself issue stock; they do not make the capital free of interest, covenant or collateral risk.

Liquidity comes with constraints

Beginning with the quarter ending March 31, 2027, the agreement requires minimum liquidity equal to 40% of total commitments before a contract-defined stabilization date and 25% afterward. It also restricts additional debt, liens, mergers, affiliate transactions and asset sales, with qualifications detailed in the credit agreement. Hut 8 has equity-cure rights for the liquidity covenant, but that mechanism does not eliminate the underlying requirement.

The distinction between this corporate revolver and project financing is important. In its August 4 second-quarter filing, Hut 8 reported $7.5 billion of fully amortizing, nonrecourse project financing for its River Bend and Beacon Point campuses. It also reported 1,330 megawatts of utility capacity under construction at those two sites, with initial data-hall delivery targeted for the second and third quarters of 2027. Those are company-reported construction targets, not completed capacity.

The same filing showed how far the business mix had moved beyond mining: second-quarter compute revenue of $72.5 million combined ASIC compute, AI cloud and traditional cloud services. Hut 8 nevertheless remained linked to bitcoin through its compute operations and majority-owned American Bitcoin subsidiary.

What Monday’s filing establishes

The verified development is access to a secured bank commitment, not a completed $1.07 billion investment. The filing does not say Hut 8 drew funds at closing, does not allocate the full line to named projects and does not establish that every planned data center will reach operation on schedule.

For shareholders, the facility expands near-term financing flexibility while adding secured claims and financial covenants at the parent level. Its significance will depend on future draws, the floating SOFR benchmark, compliance with liquidity tests and whether Hut 8 converts its construction pipeline into operating facilities and contracted cash flow.