Hut 8 secures US$1.07 billion revolving credit facility

Hut 8 Corp., a power and digital infrastructure company focused on AI data centers and compute operations, has secured a US$1.07 billion senior secured revolving credit facility. The facility has a four-year term and is committed at the company's parent organization.

The revolving structure allows the company to draw, repay, and redraw funds as needed, subject to customary conditions. A key feature of the facility is a US$1.07 billion letter-of-credit sublimit, which is included within the total revolver amount. Hut 8 intends to use these letters of credit for interconnection deposits and obligations to utilities and equipment vendors, allowing the company to secure site development commitments without tying up significant cash as collateral.

While the commitment size is confirmed, the announcement did not specify an initial draw amount or the identity of the 12 lenders in the syndicate. The borrowing margin is set at SOFR plus a margin ranging from 150 to 200 basis points, depending on the company's consolidated total-debt-to-market-capitalization ratio.