en.Wedoany.com Reported - Beacon Point DC LLC, a subsidiary of Hut 8 Corp., has completed the issuance of $4.25 billion in senior secured notes with an annual interest rate of 6.129%, maturing in 2042, and rated Baa2 by Moody's. This rating is one notch higher than the BBB− rating assigned by S&P Global Ratings and Fitch Ratings in April 2026 to Hut 8's River Bend financing.
The issuer plans to use the proceeds from this issuance to: develop and construct a turnkey data center on approximately 521 acres of land in Nueces County, Texas, which includes six data halls with a total critical IT capacity of 352 megawatts; and build a substation located on the site. The data center facility will be leased under a lease agreement to a tenant that, as of the agreement's signing date, is a highly investment-grade company (rated AA− or higher). Additionally, funds will be used to fund a debt service reserve and pay fees and expenses related to the issuance.
This issuance demonstrates a repeatable investment-grade financing model while maintaining balance sheet strength. The model is non-recourse to Hut 8, fully funded at the project level, and does not dilute existing shareholder equity. Hut 8 does not expect to issue equity for this project. The fully amortizing structure eliminates refinancing risk at the project level, while the non-recourse feature allows Hut 8 to maintain zero recourse debt at the parent company level. The notes were priced at T+165 basis points, 20 basis points tighter than the River Bend note issuance spread, making this issuance the largest, tightest-priced, and highest-rated investment-grade bond for a single-sponsor data center construction financing to date. Investor demand validated Hut 8's model for financing investment-grade construction-stage development projects, with the issuance being significantly oversubscribed and attracting both existing and new investors, expanding Hut 8's institutional credit investor base. River Bend and Beacon Point together have raised $7.5 billion in investment-grade capital for construction-stage data center development.
Hut 8 CEO Asher Genoot stated that this issuance, together with the River Bend issuance, establishes the ability to access the investment-grade financing market for data center projects and demonstrates a repeatable model for funding construction-stage development. Hut 8 CFO Sean Glennan noted that the core of this financing model is repeatability, and execution rigor allows the company to secure more favorable terms over time, with Beacon Point showing improvements over River Bend in key financing metrics such as ratings and spreads.
J.P. Morgan served as the lead bookrunner for this issuance, and Goldman Sachs served as the bookrunner.
Hut 8 is an energy infrastructure platform that integrates power, digital infrastructure, and large-scale computing to power next-generation high-energy technologies such as artificial intelligence, high-performance computing, and ASIC computing. The company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach.
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