---
title: "Hut 8 locks in $1B credit line, but faces 40% liquidity rules"
url: https://thecoingazette.com/hut-8-locks-in-1b-credit-line-but-faces-40-liquidity-rules/
date: 2026-09-29
modified: 2026-09-29
lang: en
author: "Coin Gazette Editorial"
description: "Bitcoin miner Hut 8 announced on Sept. 28 that it had closed a four-year, $1 billion senior secured credit line. The facility gives the parent company room to borrow during..."
categories:
  - "AI"
  - "Bitcoin"
  - "Debt"
  - "Featured"
  - "Mining"
word_count: 399
---

# Hut 8 locks in $1B credit line, but faces 40% liquidity rules

Bitcoin miner Hut 8 [announced on Sept. 28](https://www.prnewswire.com/news-releases/hut-8-expands-corporate-liquidity-with-1-07-billion-senior-secured-revolving-credit-facility-302890926.html) that it had closed a four-year, $1 billion senior secured credit line.

The facility gives the parent company room to borrow during site development and to back construction obligations with letters of credit. Its [securities filing](https://www.sec.gov/Archives/edgar/data/1964789/000110465926111154/tm2625691d1_8k.htm) says no amounts were outstanding when the agreement closed on Sept. 24.

[Hut 8](https://cryptoslate.com/companies/hut-8/) says letters of credit can [support interconnection deposits](https://www.prnewswire.com/news-releases/hut-8-expands-corporate-liquidity-with-1-07-billion-senior-secured-revolving-credit-facility-302890926.html) and obligations to utilities and equipment vendors, reducing the cash it needs to post as collateral. The $1 billion letter-of-credit sublimit is contained within the overall commitment.

In effect, the line offers two ways to use a single pool of bank capacity: borrowing cash or securing eligible obligations.

## Flexibility for development, exposure at the parent

Hut 8's [June 30 balance sheet](https://www.sec.gov/Archives/edgar/data/1964789/000110465926090025/hut-20260630x10q.htm) listed $233.6 million in cash, with restricted funds reported separately.

The line can help bridge interim development needs while Hut 8 decides when to arrange longer-term project financing, according to the company. That timing gives the parent a financing option while projects move through their earlier stages.

[![Diagram of Hut 8’s $1.07 billion secured parent credit line, showing borrowing and letters of credit within one commitment, parent guarantees and liens, and the separate earlier non-recourse project financing.](https://cryptoslate.com/wp-content/uploads/2026/09/exec-0dd81efc-ca9d-472c-b478-341d774644b0.png)](https://cryptoslate.com/wp-content/uploads/2026/09/exec-0dd81efc-ca9d-472c-b478-341d774644b0.png)Hut 8’s $1.07 billion secured revolver supports borrowing or letters of credit, with nothing outstanding at closing.
The new agreement names Hut 8 Corp. as borrower. Certain restricted subsidiaries guarantee its obligations, and first-priority liens cover substantially all assets of the borrower and guarantors, subject to exclusions.

[

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Hut 8 described $7.5 billion of earlier financing for its River Bend and Beacon Point AI campuses as non-recourse project financing. Use of the new line could create secured obligations at the parent and guarantor level alongside those project structures.

If Hut 8 chooses Term SOFR loans, the initial margin is 1.75 percentage points above the benchmark. That margin can range from 1.50 to 2.00 points as the company's debt-to-market-capitalization ratio changes.

The agreement also restricts certain additional debt and liens, subject to qualifications, and a minimum-liquidity covenant beginning with the quarter ending March 31, 2027.

Its threshold is 40% of commitments before a defined stabilization date and 25% afterward, measured using the agreement's definition of liquidity and subject to equity cure rights. How much Hut 8 eventually borrows or issues in letters of credit will determine the scale of its parent-level obligations.

The post [Hut 8 locks in $1B credit line, but faces 40% liquidity rules](https://cryptoslate.com/hut-8-locks-in-1b-credit-line-but-faces-40-liquidity-rules/) appeared first on [CryptoSlate](https://cryptoslate.com/).