Hut 8 secures a $1.07 billion four-year revolving credit facility, further strengthening its parent company’s liquidity.

Bitcoin mining firm Hut 8 announced it has closed a $1.07 billion four-year senior secured revolving credit facility, aimed at boosting parent-level liquidity, funding development of projects including AI data centers, and advancing its goal of securing an investment-grade corporate credit rating. The non-dilutive debt financing carries an initial interest rate of SOFR plus 175 basis points, which will later fluctuate between SOFR plus 150 and 200 basis points based on the company’s total debt-to-market capitalization ratio. Hut 8 can draw down and repay funds flexibly as needed, with no prepayment penalties. Additionally, the facility includes a $1.07 billion letter of credit sub-limit, usable to cover grid access deposits, utility and equipment supplier-related collateral requirements for project development, reducing cash collateral needs. JPMorgan Chase acted as lead arranger, bookrunner, and administrative agent for the financing, with Citigroup, Goldman Sachs, and Morgan Stanley serving as joint lead arrangers and bookrunners, and 12 total lenders participating.