Hut 8 Trending as It Adds $1 Billion in Non-Dilutive Bank Liquidity

Hut 8 Corp. (NASDAQ:HUT) is trending Monday after the company announced the closing of a $1.07 billion four-year senior secured revolving credit facility. Hut 8 stock is showing weakness. What’s pulling HUT shares down? Hut 8 Adds $1 Billion in Committed Bank Liquidity The facility strengthens Hut 8’s parent-level liquidity as the company continues to pursue an investment-grade corporate profile, building on its existing $7.5 billion of fully amortizing, non-recourse investment-grade project financing used to fund development and construction at its River Bend and Beacon Point AI data center campuses. Borrowings carry a drawn margin ranging from SOFR plus 150 to 200 basis points based on Hut 8’s consolidated total debt-to-market-capitalization ratio, with an initial margin of SOFR plus 175 basis points at closing and can be drawn and repaid without prepayment penalties. The facility also includes a $1.07 billion letter-of-credit sublimit designed to support collateral requirements tied to site development, including interconnection deposits and obligations to utilities and equipment vendors, reducing the need to post cash collateral. “We are building a capital structure designed to scale with the business while giving us control over when, where, and how we deploy capital, flexibility that matters given the speed and capital intensity of AI infrastructure development,” said Sean Glennan, CFO of Hut 8. “This Facility adds more than $1 billion of committed, non-dilutive bank liquidity at the parent level, giving us the ability to fund projects through development while we determine the optimal timing and structure for long-term, non-recourse financing as they de-risk.” Read Also: Stock Market Today: S&P 500, Dow Jones Futures Fall as Rising Yields and Trump’s Hormuz Deal Rejection Spook Investors—LLY, PEP, JEF in Focus Hut Shares Edge Lower HUT Price Action: At the time of publication, Hut shares are trading 1.36% lower at $95.50, according to data from Benzinga Pro. This illustration was generated using artificial intelligence via Midjourney.