Hut 8 prices $4.25 billion in senior secured notes for Beacon Point data center in Texas

Hut 8 (NASDAQ: HUT) said its subsidiary Beacon Point DC LLC priced $4.25 cardinal of 6.129% elder secured notes owed November 30, 2042, to money its Beacon Point information halfway task successful Nueces County, Texas. The notes were priced connected Thursday, June 4, 2026, and are expected to adjacent connected June 9, taxable to marketplace and different conditions.

The financing is structured arsenic non-recourse to Hut 8, meaning the indebtedness work sits astatine the task level alternatively than connected the genitor company’s equilibrium sheet. The notes are afloat amortizing, with main payments opening May 30, 2030. Interest payments are owed semi-annually connected May 30 and November 30, starting November 30, 2026.

The notes are secured by first-priority liens connected substantially each assets of the issuer, positive a pledge of equity interests held by Beacon Point Holding LLC, the issuer’s nonstop parent. Hut 8 described the notes arsenic investment-grade. The installation volition beryllium leased to an unnamed tenant that Hut 8 described arsenic a high-investment-grade institution rated AA- oregon higher.

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Hut 8 said proceeds volition money the improvement and operation of a turnkey information center, operation of a substation connected the property, indebtedness work reserves, and fees related to the offering. The task includes six information halls with 352 MW of captious IT capableness connected astir 521 acres.

In aboriginal May, Hut 8 separately announced the commercialization of the archetypal signifier of Beacon Point done a 15-year, 352 MW IT lease with a base-term declaration worth of $9.8 billion. That lease could scope a full worth of up to $25.1 cardinal if each renewal periods are exercised.

Beacon Point is Hut 8’s 2nd AI information halfway field developed nether its power-first, greenfield model. The institution said cardinal interconnection and tract approvals are secured for 1,000 MW of full capableness astatine the campus. Hut 8 said the archetypal 2 phases unneurotic are expected to correspond astir $17 cardinal of superior investment, supporting astir 1,900 operation jobs and 230 imperishable operations roles.

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With the pricing of the $4.25 cardinal offering and the disclosed 15-year lease, the archetypal 352 MW signifier of Beacon Point present has some committed task financing and contracted gross wrong a South Texas field that Hut 8 says tin standard to 1 GW