Hut 8 Secures $1.07 Billion Credit Facility to Scale AI Infrastructure

The new facility allows Hut 8 to draw funds as needed, with initial margins set at SOFR plus 175 basis points. By providing a $1.07 billion letter-of-credit sublimit, the arrangement reduces the company's reliance on cash collateral for site development, including utility obligations and interconnection deposits. This structure is designed to preserve capital flexibility while the company pursues an investment-grade profile.

CFO Sean Glennan noted that the facility empowers Hut 8 to fund projects through their development lifecycle before committing to long-term, non-recourse financing. This approach aims to optimize the cost of capital and limit equity dilution as the company expands its footprint at the River Bend and Beacon Point campuses. J.P. Morgan served as the lead arranger, joined by a syndicate including Citi, Goldman Sachs, and Morgan Stanley.