Hut 8 closes $4.25B notes for Beacon Point data center
Hut 8 Corp. closed a $4.25 billion offering of 6.129% senior secured notes due 2042 for its Beacon Point data center project. The notes are rated Baa2 by Moody's Ratings and priced 20 basis points inside the River Bend notes issuance spread. Proceeds will finance the development of a 352-megawatt data center in Nueces County, Texas.
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Hut 8 Corp. closed a $4.25 billion offering of 6.129% senior secured notes due 2042 to finance the Beacon Point data center project in Nueces County, Texas. The notes are rated Baa2 by Moody's Ratings, one notch above the BBB− assigned to Hut 8's River Bend financing in April 2026. The offering was substantially oversubscribed, broadening Hut 8's institutional credit investor base and bringing cumulative project-level, investment-grade data center construction financing to $7.5 billion.
The issuer, Beacon Point DC LLC, a wholly-owned subsidiary of Hut 8, intends to use the proceeds to finance the development and construction of a turnkey data center with six data halls totaling 352 megawatts of critical IT capacity. The facility will be leased to a tenant rated AA− or higher as of the closing date. Additional proceeds will fund debt service reserves and pay offering-related fees and expenses.
Offering Highlights
The offering marks the second execution of a financing model that is non-recourse to Hut 8, fully funded at the project level, and non-dilutive to existing shareholders. The fully amortizing structure eliminates refinancing risk at the project level, while the non-recourse profile allows Hut 8 to maintain zero recourse debt at the parent level.
Priced at T+165 basis points, the notes priced 20 basis points inside the River Bend notes issuance spread. The terms establish the offering as the largest, tightest-priced, and highest-rated investment-grade bond issued to date in a single-sponsor data center construction financing.
Key Financial Details
| Metric | Details |
|---|---|
| Total Amount | $4.25 billion |
| Coupon Rate | 6.129% |
| Maturity | 2042 |
| Rating | Baa2 (Moody's Ratings) |
| Pricing Spread | T+165 basis points |
| Project Capacity | 352 megawatts |
Asher Genoot, CEO of Hut 8, said the offering establishes the ability of the company's data center projects to access investment-grade financing markets and demonstrates a repeatable model for funding construction-stage development. Sean Glennan, CFO of Hut 8, noted that Beacon Point improves on River Bend across key financing metrics, including rating and spread.
J.P. Morgan acted as lead bookrunner for the offering. Goldman Sachs & Co. LLC acted as a bookrunner.
Will the success of the Beacon Point financing model accelerate Hut 8's timeline for announcing additional data center projects?
How will the 20 basis point pricing improvement impact Hut 8's cost of capital for future non-recourse project financings?
Could the oversubscription of this offering signal increased institutional appetite for high-yield data infrastructure debt?
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