Hut 8 locks in $1B credit line, but faces 40% liquidity rules
Summary
Hut 8 closed a four-year, $1 billion senior secured credit facility, with no funds drawn at closing. The line can provide cash or letters of credit for site development, utility and vendor obligations, and construction needs. It gives the company interim financing flexibility while projects advance and longer-term financing is arranged. Hut 8 Corp. is the borrower; certain subsidiaries guarantee the facility, secured by liens on substantially all their assets, subject to exclusions. The agreement sets interest margins, limits some additional debt and liens, and introduces a minimum-liquidity covenant starting in 2027. The extent of parent-level obligations will depend on future borrowing and letters of credit.
