Hut 8 Secures $3.25 B 6.192% Bond and $9.8 B Beacon Point Lease for AI Data Centers
HUT•Hut 8 issued a $3.25 billion, 6.192% bond due 2042 to fully fund its 245 MW River Bend AI data center under a 15-year, $7 billion lease. CEO Asher Genoot secured a $9.8 billion Beacon Point lease with an undisclosed tenant, addressing water, energy and noise concerns via closed-loop cooling.
1. Investment Grade Bond Financing for River Bend
Hut 8 raised $3.25 billion through a fully amortizing bond due November 2042 with a 6.192% coupon. The issuance, through subsidiary Hut 8 DC LLC, secured BBB− ratings from S&P and Fitch before construction completion, eliminating refinancing risk by using contracted cash flows for repayment.
2. River Bend Lease and Project Details
The bond funds River Bend, a 245 MW AI data center and substation in St. Francisville, Louisiana, underpinned by a 15-year, $7 billion triple-net lease with Fluidstack and a Google payment backstop. The lease includes a 3% annual rent escalator and renewal options that could increase total contract value to roughly $17.7 billion.
3. Beacon Point Lease and Community Response
CEO Asher Genoot secured a separate 15-year, $9.8 billion Beacon Point lease with an undisclosed tenant for a 1 GW AI campus in Nueces County, Texas. He addressed local opposition by highlighting closed-loop cooling, $16 million in water infrastructure upgrades and measures to mitigate energy, noise and aesthetic concerns.
