HUT
New money, same mission
Hut 8 says it closed a $1.07 billion, four-year senior secured revolving credit facility, which is a fancy way of saying it just gave itself a much bigger financial toolbox. The company says the deal adds more than $1 billion of committed, non-dilutive liquidity at the parent level.
Why this matters
For a company building AI data center campuses, capital is the oxygen tank. Hut 8 says the new facility will help fund development while it figures out the right long-term financing structure for projects as they get de-risked. In other words: build now, optimize the capital stack later.
A few investor-friendly nuggets:
- Borrowings are priced at SOFR plus 150 to 200 basis points, depending on Hut 8's debt-to-market-cap ratio
- The initial draw comes in at SOFR plus 175 basis points
- The facility also includes a $1.07 billion letter-of-credit sublimit, which can help with collateral tied to interconnection deposits and vendor obligations
Why the stock is still wobbling
Even with the shiny new financing headline, HUT shares were down on the day. That’s the market reminding everyone that cheaper capital is nice, but AI infrastructure is still a very expensive game of musical chairs.
Big picture: Hut 8 is trying to look more like an investment-grade infrastructure operator and less like a company sprinting from one funding round to the next. Whether investors buy that story depends on how quickly those campuses turn from promise into actual revenue.