Bitcoin miner Hut 8 Corp. has closed a four-year, $1.07 billion senior secured revolving credit facility, according to a securities filing that says no amounts were outstanding when the agreement took effect on Sept. 24. The company announced the deal on Sept. 28.

The facility names Hut 8 Corp. as borrower, with certain restricted subsidiaries guaranteeing the obligations. First-priority liens cover substantially all assets of the borrower and the guarantors, subject to exclusions. That structure places the new debt at the parent level, a deliberate contrast with the roughly $7.5 billion in financing Hut 8 previously described as non-recourse project financing for its River Bend and Beacon Point AI campuses.

The revolver gives the company two ways to use a single pool of bank capacity: borrowing cash or issuing letters of credit. The $1 billion letter-of-credit sublimit sits within the overall commitment. According to the company, letters of credit can support interconnection deposits and obligations to utilities and equipment vendors, reducing the cash Hut 8 must post as collateral during site construction.

Bridging tool, not permanent financing

Hut 8's balance sheet as of June 30 listed $233.6 million in cash, with restricted funds reported separately. The company says the line can bridge interim development needs while it decides when to arrange longer-term project financing for individual sites. That timing gives the parent flexibility while projects move through their earlier stages, before permanent capital is in place.

Pricing on the facility ties directly to Hut 8's balance sheet strength. If the company draws Term SOFR loans, the initial margin is 1.75 percentage points above the benchmark. The margin can move within a band of 1.50 to 2.00 percentage points as Hut 8's debt-to-market-capitalization ratio changes.

Liquidity covenant starts in 2027

The agreement restricts certain additional debt and liens, subject to qualifications. It also imposes a minimum-liquidity covenant that begins with the quarter ending March 31, 2027. The threshold is 40% of commitments before a defined stabilization date and 25% afterward, measured using the agreement's own definition of liquidity and subject to equity cure rights.

The covenant structure creates a concrete constraint on how aggressively Hut 8 draws the line. On a fully committed $1.07 billion facility, a 40% liquidity requirement before stabilization means the company must maintain substantial qualifying liquidity relative to what it borrows. How much Hut 8 eventually draws in loans or issues in letters of credit will determine the scale of its parent-level secured obligations.

The facility also shifts Hut 8's capital structure in a way that matters operationally. Prior project financings isolated risk inside individual campus-level vehicles, where lenders could only look to project assets. The new revolver extends secured exposure across the parent and its restricted subsidiaries, meaning a default could reach corporate assets well beyond any single data center or mining site.

For a company building out AI infrastructure alongside bitcoin mining, the trade is straightforward: cheaper collateral management and development liquidity now, in exchange for a secured claim on the broader enterprise and a binding liquidity floor two years out. Hut 8 has not disclosed a drawdown schedule, and the company confirmed nothing was outstanding at closing.

Investors will get the first real test of the covenant mechanics with the quarter ending March 31, 2027, when the minimum-liquidity measurement begins and Hut 8's actual utilization of the facility becomes visible in its filings.