Hut 8 Secures $4.25 Billion for Texas Data Center Expansion

Hut 8 Mining has completed financing for one of its largest projects to date, transforming itself from a cryptocurrency miner to a provider of AI infrastructure. The company's subsidiary Beacon Point DC LLC successfully issued secured bonds worth $4.25 billion at an interest rate of 6.129% with a maturity date in 2042.

The funding will directly support the construction of the Beacon Point data center in Texas, which will have a capacity of 352 megawatts and consist of six data halls and its own substation on a 520-hectare site. A tenant with excellent creditworthiness is expected to occupy the facility.

Hut 8 has adopted a 'Power-First' strategy, securing access to energy before signing specific lease agreements. This flexibility allows it to utilize capacity for Bitcoin mining if AI clients are unavailable.