Hut 8 locks in $3.25 billion at 6.192% to build out its Louisiana data center

Hut 8 just closed the largest single financing in its history. On April 27, 2026, Hut 8 DC LLC, an indirect wholly-owned subsidiary of Hut 8 Corp., priced $3.25 billion in 6.192% Senior Secured Notes due November 15, 2042. The indenture was executed on April 30, and the 8-K landed May 1. This is not a revolving credit line or a convertible note. It is a 16-year project-finance instrument secured against a specific asset: the River Bend data center campus in St. Francisville, Louisiana.

The River Bend Project Is the Collateral

The filing is explicit about where the money goes. Proceeds are designated to finance and partially reimburse prior equity contributions toward the development and construction of a 245-megawatt critical IT capacity data center and its related substation at River Bend, fund debt service reserves, and cover offering fees and expenses. That is a narrower use-of-proceeds disclosure than the boilerplate general corporate purposes language that typically appears in equity or convertible offerings. The specificity matters because it ties the notes directly to the completion and performance of one project.

The notes bear interest at 6.192% per annum, payable semi-annually on May 15 and November 15 each year, beginning November 15, 2026. Principal amortization begins May 15, 2028, also on a semi-annual schedule. The amortization amounts are set in the indenture and subject to adjustment for partial redemptions, repurchases, or additional note issuances.

How the Call and Repurchase Mechanics Work

Before the par call date of May 15, 2042, the issuer can redeem the notes at a make-whole price plus accrued interest. On or after that date, redemption is at par plus accrued interest. Two additional redemption triggers are worth tracking. If a Data Center Lease Termination Event occurs, the issuer may redeem at par plus accrued interest. If the issuer's Debt Service Coverage Ratio falls below 1.1 times after the Initial Commencement Date, the issuer may redeem a portion of the notes to bring the ratio back to approximately 1.1 times.

On the repurchase side, a change-of-control event requires an offer to repurchase at 101% of principal plus accrued interest. Certain asset sales, a Data Center Lease Termination Default, and defined reductions in the guaranteed maximum price for the project trigger repurchase offers at par plus accrued interest. These mechanics mean the notes are tightly coupled to the River Bend project's operational and contractual status.

$3.25 Billion Against a $71 Million Revenue Base

$HUT's latest reported revenue was $71.02 million for the quarter ending March 31, 2026. The $3.25 billion note offering is roughly 11 times that annualized revenue run rate. That ratio reflects the project-finance structure of the deal: the notes are obligations of the subsidiary issuer, secured against the data center asset, and the debt service is expected to be covered by the project's cash flows rather than consolidated corporate revenue. Still, the scale of the obligation relative to the parent's current operating base is a material consideration for anyone modeling $HUT's consolidated balance sheet.

$HUT's Filing Risk Score sits at 80, reflecting the elevated disclosure cadence around this financing event. The BTC Exposure Score is also 80, anchored on $HUT's position as a Bitcoin miner where production economics and treasury policy remain central to the equity story. The data center expansion adds a new layer: a long-duration, fixed-rate, project-finance obligation that sits alongside the mining operation rather than replacing it.

What the Indenture Covenants Constrain

The indenture limits HoldCo's ability to engage in certain transactions, with qualifications and exceptions detailed in the full document. The covenants are project-level rather than parent-level, which means $HUT Corp. retains operational flexibility at the consolidated level, but the subsidiary's capital structure is now governed by a 16-year indenture with Wilmington Trust as trustee and collateral agent. Any material change to the River Bend project, including lease termination or a significant reduction in the guaranteed maximum construction price, could trigger mandatory repurchase mechanics.

$HUT's stock has moved sharply over the past year, up more than 470% on a trailing 12-month basis as of May 20, 2026, with the 90-day gain running close to 80%. That price performance reflects both the Bitcoin miner re-rating and the market's read on the data center buildout. The River Bend financing closes the capital question for that project, but it also locks in a 16-year obligation whose debt service coverage will depend on the data center achieving and sustaining its contracted revenue.

The next concrete monitoring point is the first semi-annual interest payment on November 15, 2026, and the first principal amortization installment on May 15, 2028. Between now and then, watch for any 8-K disclosing a Data Center Lease Termination Event or a construction cost revision that approaches the guaranteed maximum price thresholds defined in the indenture.

Research only. Not investment advice.