Bitcoin miner Hut 8 said on Sept. 28 that it has completed a $1.07 billion senior secured revolving credit facility with a four-year term, a move the company said is designed to strengthen liquidity at the parent-company level. The facility is also intended to help fund development projects including AI data centers, while supporting Hut 8’s goal of building toward an investment-grade corporate credit rating.
The financing is structured as non-dilutive debt. It carries an initial interest rate of SOFR plus 175 basis points, with the spread later adjusting between SOFR plus 150 and 200 basis points depending on the company’s total debt-to-market capitalization ratio. Hut 8 said it can draw and repay the facility as needed and will not face prepayment penalties.
The package also includes a $1.07 billion letter-of-credit subfacility. According to the company, that portion can be used for grid interconnection deposits and other assurance requirements tied to utilities and equipment suppliers during project development, reducing the need for cash collateral. JPMorgan is serving as lead arranger, bookrunner, and administrative agent, while Citigroup, Goldman Sachs, and Morgan Stanley are acting as joint lead arrangers and bookrunners. A total of 12 lenders are participating.
Bitcoin miner Hut 8 said on Sept. 28 it has completed a $1.07 billion senior secured revolving credit facility with a four-year term, aimed at strengthening liquidity at the parent-company level and supporting development work on projects including AI data centers.
The company said the financing also supports its goal of building toward an investment-grade corporate credit rating. The facility is structured as non-dilutive debt financing and carries an initial interest rate of SOFR plus 175 basis points.
After that, pricing will vary between SOFR plus 150 and 200 basis points based on the company’s total debt-to-market capitalization ratio. Hut 8 said it can draw on and repay the facility based on funding needs, with no prepayment penalty.
The financing also includes a $1.07 billion letter-of-credit subfacility. That portion can be used to cover grid interconnection deposits during project development, as well as assurance requirements from utilities, equipment suppliers, and other related parties, reducing the need for cash collateral.
JPMorgan acted as lead arranger, bookrunner, and administrative agent. Citigroup, Goldman Sachs, and Morgan Stanley served as joint lead arrangers and bookrunners. A total of 12 lending institutions participated in the deal.
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