Hut 8 Corp., an energy infrastructure platform integrating power, digital infrastructure, and compute, has closed a $3.25 billion offering of 6.192% senior secured notes due 2042 through its wholly owned subsidiary Hut 8 DC. The notes are rated BBB-minus by both S&P Global Ratings and Fitch Ratings and represent the first investment-grade construction bond issued for a single-sponsor data center project.
The proceeds will finance the development and construction of a 245-megawatt critical IT capacity data center and related substation at Hut 8’s River Bend campus, return approximately $184 million in prior equity contributions to Hut 8, and fund debt service reserves. The fully amortizing 16.5-year structure eliminates refinancing risk by matching the construction period and the 15-year contracted lease term, with principal and interest funded by contracted lease cash flows. The order book was significantly oversubscribed, drawing participation from leading institutional investors.
Hut 8 trades on both Nasdaq and the TSX under the ticker HUT.
Support: J.P. Morgan acted as lead bookrunner. Goldman Sachs and Morgan Stanley acted as joint bookrunners.
KEY QUOTES:
“Closing this first-of-its-kind financing is the result of decisions made long before we engaged the capital markets: how we originate power, the counterparties we contract with, and the structural protections we require across every component of a project. In a market where gigawatts of new data center capacity are being announced, that standard remains the exception. We built River Bend to it, and it is the model we intend to apply across our pipeline.”
Asher Genoot, CEO, Hut 8
“Starting from first principles, we defined the financing terms the asset warranted, de-risked, high-grade, and institutional, and rigorously stress-tested those terms across construction lending, high-yield, and investment-grade markets, and then executed the structure that best served the asset.”
Sean Glennan, CFO, Hut 8
