Hut 8 Plans $4.25B Debt Raise for Texas AI Data Center

Hut 8 (NASDAQ: HUT) Corp. is seeking to raise $4.25 billion through a private debt offering to finance the first phase of its Beacon Point AI data center campus in Texas, tying one of the largest recent bitcoin miner-led infrastructure financings to a previously announced 15-year lease with an investment-grade tenant.

Beacon Point DC LLC, an indirect wholly owned subsidiary of Hut 8, plans to offer $4.25 billion of senior secured notes due 2042, according to a June 4 filing with the US Securities and Exchange Commission. The notes will be offered to qualified institutional buyers under Rule 144A and to non-US investors under Regulation S.

The proceeds are expected to fund the development and construction of a turnkey data center in Nueces County, Texas, along with a substation on the property, debt service reserves and related transaction expenses. The project is planned to include six data halls with a combined 352 megawatts of critical IT capacity on an approximately 521-acre site.

The filing follows Hut 8’s May 6 announcement that it had commercialized the first phase of the Beacon Point campus through a 15-year, 352 MW IT lease with a confidential high-investment-grade tenant. Hut 8 said at the time that the lease carried a base-term contract value of $9.8 billion and could reach about $25.1 billion if all renewal options are exercised.

The structure gives Hut 8 a contracted revenue base to support a large project-level financing, rather than relying only on corporate-level debt or equity issuance. In its earlier announcement, Hut 8 described the Beacon Point lease as a triple-net arrangement, meaning the tenant would typically bear certain operating costs in addition to rent. The company said the lease includes a 3% annual base rent escalator and is expected to contribute about $655 million of average annual net operating income upon stabilization.

The June 4 filing identifies the tenant only as a company rated AA- or higher as of the filing date. Hut 8 also said the data center will be leased under the existing data center lease agreement, indicating that the planned debt raise is linked to the commercial contract announced last month.

Beacon Point is designed as a larger 1 GW campus. Hut 8 said in May that it had executed an interconnection agreement for 1,000 MW of utility capacity, with initial energization expected in the first quarter of 2027. The first phase, covering 352 MW of IT capacity, is expected to require about 500 MW of utility capacity. Initial data hall delivery is targeted for the third quarter of 2027.

The project marks Hut 8’s second major AI data center commercialization after River Bend. Together, the two projects increased Hut 8’s contracted AI data center capacity to 597 MW and its aggregate base-term contract value to about $16.8 billion, according to the company’s May announcement.

The financing plan underscores how bitcoin miners and adjacent power infrastructure companies are trying to reposition their sites, interconnection rights and development pipelines for AI and high-performance computing demand. The capital requirements are significantly larger than traditional bitcoin mining deployments, but the presence of long-term leases with high-credit tenants can allow companies to pursue infrastructure-style financing at the project level.

For Hut 8, Beacon Point is also a test of whether its “power-first” development model can be repeated across its broader pipeline. The company has argued that securing power, land and interconnection capacity before commercialization gives it an advantage as hyperscale customers compete for large blocks of energy-ready data center capacity.

Still, the offering is not yet completed. Hut 8 said the debt raise remains subject to market conditions and other factors. The filing also said the information in the 8-K and attached illustrative financial materials was furnished rather than filed, and that the disclosure does not constitute an offer to sell or a solicitation to buy securities.

If completed, the financing would add to a growing wave of large-scale debt packages tied to AI infrastructure development, as data center operators, cloud providers and former bitcoin mining companies seek capital to build power-intensive campuses for accelerated computing.