Hut 8 Secures $1B Credit Line with Liquidity Strings Attached
Hut 8, a Bitcoin mining company, has secured a four-year $1 billion senior secured credit line. This facility allows Hut 8 to borrow funds during site development and use letters of credit to support interconnection deposits and obligations to utilities and equipment vendors.
The agreement gives Hut 8 the flexibility to choose between borrowing cash or securing eligible obligations, with no amounts outstanding at closing. The company's June 30 balance sheet listed $233.6 million in cash, but this new line can help bridge interim development needs while projects move through their earlier stages.
Hut 8 described its $7.5 billion of earlier financing for its River Bend and Beacon Point AI campuses as non-recourse project financing. The use of the new line could create secured obligations at the parent and guarantor level alongside those project structures.