Hut 8 Cuts Debt Cost 200 Basis Points, Unencumbers 3,300 BTC and Secures $3.25B Financing
Hut 8 secured a $200 million, 364-day Bitcoin-backed credit facility at a fixed 7.0% rate, cutting debt cost by 200 basis points and unencumbering about 3,300 BTC worth $260 million. It locked in $3.25 billion of non-recourse financing for its 245 MW River Bend data center, freeing $184 million in capital under a 15-year lease.
1. Bitcoin-Backed Credit Facility Refinancing
Hut 8’s subsidiary replaced its prior Coinbase Credit facility with a new $200 million, 364-day credit line from FalconX at a fixed 7.0% rate, a 200-basis-point improvement over the previous 9.0% rate. This transaction releases roughly 3,300 BTC—valued at about $260 million—as unencumbered collateral, enhancing the company’s liquidity and balance sheet flexibility while maintaining a limited-recourse structure and fixed loan-to-value thresholds.
2. River Bend Data Center Financing
The company secured $3.25 billion in non-recourse, investment-grade project financing for its River Bend campus, which offers an initial capacity of 245 MW under a 15-year triple-net lease. This financing arrangement returns $184 million of capital to the company, reduces refinancing and dilution risks, and solidifies contracted cash flows from a power-first, infrastructure-driven model.