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Hut 8 secures $1 billion credit line to back crypto site obligations

Hut 8 said no amounts were outstanding when the credit agreement closed on Sept. 24, and the company cited a $233.6 million cash balance on June 30.

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Hut 8 announced on Sept. 28 that it closed a four-year, $1 billion senior secured credit line, with the facility allowing the parent company to borrow during site development and to support construction-related obligations using letters of credit. The company said its securities filing showed no amounts outstanding when the agreement closed on Sept. 24.

According to Hut 8, letters of credit can be used to back interconnection deposits and obligations to utilities and equipment vendors, reducing the amount of cash it needs to post as collateral. The credit line includes a $1 billion letter-of-credit sublimit, contained within the overall commitment, and it effectively provides two ways to use the same bank capacity, either borrowing cash or securing eligible obligations.

Hut 8 also pointed to its balance sheet, saying its June 30 financials showed $233.6 million in cash, with restricted funds reported separately. The company said the line can help bridge interim development needs while it decides when to arrange longer-term project financing as projects move through earlier stages.

The agreement names Hut 8 Corp. as the borrower, and certain restricted subsidiaries guarantee its obligations, with first-priority liens referenced in the filing.

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