Hut 8 Scores $1B Credit Line, but Faces Stricter Liquidity Rules

Hut 8, a Bitcoin miner, has secured a four-year senior secured credit line worth $1 billion. The agreement was closed on September 24 and gives Hut 8 room to borrow during site development and construction obligations. This facility provides two ways to use a single pool of bank capacity: borrowing cash or securing eligible obligations with letters of credit.

The new agreement names Hut 8 Corp. as the borrower, with certain restricted subsidiaries guaranteeing its obligations. First-priority liens cover substantially all assets of the borrower and guarantors, subject to exclusions. The $1 billion letter-of-credit sublimit is contained within the overall commitment.

The credit line can help Hut 8 bridge interim development needs while it decides when to arrange longer-term project financing. The company's balance sheet listed $233.6 million in cash as of June 30, with restricted funds reported separately.