According to ME News, on September 28 (UTC+8), Bitcoin mining company Hut 8 announced the completion of a $1.07 billion four-year senior secured revolving credit facility aimed at enhancing liquidity at the parent company level, funding the development of projects such as AI data centers, and advancing its goal of establishing an investment-grade corporate credit rating. This financing is structured as non-dilutive debt, with an initial interest rate of SOFR plus 175 basis points, subject to adjustment based on the company’s total debt-to-market-cap ratio, ranging between SOFR plus 150 to 200 basis points. The company may draw down and repay funds flexibly according to its cash needs, with no prepayment penalties. Additionally, the facility includes a $1.07 billion letter of credit sub-limit to cover grid connection deposits and other collateral requirements from utilities and equipment suppliers, thereby reducing the need for cash collateral. JPMorgan Chase serves as the lead arranger, bookrunner, and administrative agent, while Citigroup, Goldman Sachs, and Morgan Stanley act as joint lead arrangers and bookrunners. A total of 12 lending institutions participated in the financing. (Source: BlockBeats)
Hut 8 Secures $107 Million 4-Year Revolving Credit Facility
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Summary
Hut 8 has secured a $107 million four-year revolving credit facility to enhance liquidity and fund AI data center initiatives. The facility, arranged by JPMorgan and co-led by Citigroup, Goldman Sachs, and Morgan Stanley, features a SOFR-based interest rate with a spread of 150 to 200 basis points. On-chain data indicates rising altcoins to watch as companies expand into AI infrastructure. The agreement includes a $107 million sub-limit for letters of credit and involved 12 lenders.
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