Hut 8 Raises $4.25B in 6.129% Baa2 Notes to Fund 352 MW Texas Data Center
HUT•Hut 8 closes $4.25 billion 6.129% senior secured notes due 2042, rated Baa2 and priced at 165 basis points over Treasuries, boosting project-level financing to $7.5 billion. Proceeds will finance a 352 MW, six-hall data center on 521 acres in Texas under a non-recourse, fully amortizing structure.
1. Offering Details
Hut 8 issued $4.25 billion of 6.129% senior secured notes due 2042 through its subsidiary Beacon Point DC LLC, achieving a Baa2 rating and pricing at 165 basis points over U.S. Treasuries. This marks the largest, tightest-priced single-sponsor data center construction bond to date.
2. Beacon Point Project
The offering funds development of a turnkey data center on a 521-acre site in Nueces County, Texas, featuring six data halls totalling 352 MW of critical IT capacity and a new substation. The facility will be leased to a high-investment-grade tenant rated AA− or higher.
3. Financing Model and Investor Response
This represents Hut 8’s second non-recourse, fully amortizing, non-dilutive project financing, preserving parent-level balance sheet strength with no expected equity issuance. The notes were substantially oversubscribed, broadening the institutional investor base and bringing cumulative data center financing to $7.5 billion.
