Hut 8 announced on Sept. 28 it has secured a $1.07 billion revolving credit facility, one of the largest financing deals in the Bitcoin mining sector this year. The stock has fallen anyway. S
Hut 8 announced on Sept. 28 it has secured a $1.07 billion revolving credit facility, one of the largest financing deals in the Bitcoin mining sector this year. The stock has fallen anyway.
Shares of Hut 8 (Nasdaq: HUT) were trading around $94.52 on Sept. 28, down roughly 6% from $100.60 a week earlier.
The sharpest decline came on Sept. 25, the same day the facility closed, when the stock dropped to $98.20 and has struggled to recover since.
Hut 8 stock price at press time. Source: RobinhoodRelated: Michael Saylor has a stark warning about America's financial future
A revolving credit facility is essentially a large, flexible line of credit, similar to a corporate credit card. Hut 8 can borrow from the $1.07 billion pool as needed, repay without penalties, and borrow again over a four-year term.
The interest rate starts at roughly 1.75 percentage points above a benchmark called SOFR, which tracks overnight borrowing costs between banks.
JPMorgan Chase is leading the facility as administrative and collateral agent.
Hut 8, based in Miami, is an energy infrastructure company that operates Bitcoin mining, AI data centers, and cloud computing.
The company says the new credit line is non-dilutive, meaning it doesn't issue new shares to raise the capital, and strengthens its balance sheet as it pursues an investment-grade corporate profile.
The revolving facility sits on top of a much larger debt stack. Hut 8 has already raised $7.5 billion in non-recourse, investment-grade project financing to build out its River Bend and Beacon Point AI data center campuses.
The Beacon Point campus alone is anchored by a 15-year, $9.8 billion lease with a major tech tenant.
Despite the scale of these deals, the stock has been under pressure. Hut 8 shares are still up over 100% year-to-date, but the past week suggests the market may be taking a wait-and-see approach as the company layers on debt to fund its data center ambitions.
Related: $50 billion investment firm says Bitcoin is becoming a portfolio staple
