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Hut 8 has $233.6 million of unrestricted cash after AI funding
Most of Hut 8's reported $7 billion cash total is restricted for its River Bend and Beacon Point AI data-center projects.
Hut 8 reported more than $7 billion of cash, restricted cash, and cash equivalents as of June 30, but a filing dated Aug. 4 shows only $233.6 million was unrestricted and available for general corporate use, with the remaining $6.8 billion classified as restricted.
According to CryptoSlate, the restricted funds mainly come from proceeds from notes issued for the River Bend and Beacon Point AI data-center developments, which are held in construction and debt-service reserve accounts required by their indentures, and it also includes an unquantified amount supporting commercial letters of credit.
The company’s project financing also limits its direct exposure at the parent level, as River Bend’s $3.25 billion of 6.19% notes are obligations of Hut 8 DC LLC and Beacon Point’s $4.25 billion of 6.13% notes belong to Beacon Point DC LLC, with the note packages isolated at the subsidiary level and Hut 8 Corp outside the guarantee structure.
Hut 8 reported a $177.1 million second-quarter net loss that included a $138.6 million loss on digital assets described as primarily unrealized, while adjusted EBITDA was positive $10.4 million excluding digital-asset mark-to-market changes and negative $94.6 million when those changes were included, and it recorded $51.2 million of interest expense in the quarter partly offset by $27.1 million of interest income.