MIAMI, FL — Hut 8 Corp. has closed a historic $4.25 billion private offering of investment-grade senior secured notes to finance the ground-up development of its premier Beacon Point data center project in Nueces County, Texas. The non-dilutive financing will support the construction of a massive campus delivering 352 MW of critical IT capacity, complete with a dedicated on-site utility substation. The state-of-the-art facility is fully committed via a 15-year triple-net (NNN) lease to a confidential, high-investment-grade tenant rated AA- or higher.
The notes, issued through Hut 8’s wholly-owned subsidiary Beacon Point DC LLC, carry a solid Baa2 investment-grade rating from Moody’s and will mature on November 30, 2042. Priced at a coupon rate of 6.129%, the debt structure is strictly non-recourse to the parent company, fully amortizing (with payments commencing in 2030), and preserves absolute equity flexibility. According to the company, the book-building process was substantially oversubscribed.
This marks Hut 8’s second blockbuster project-level infrastructure financing this year, following its $3.25 billion River Bend transaction in Louisiana. Together, these two initiatives have attracted $7.5 billion in institutional investment-grade capital to fund construction-stage data center development.
Spanning approximately 521 acres in South Texas, the Beacon Point facility has been engineered to deliver a hyper-dense AI factory explicitly designed around NVIDIA’s DSX reference architecture for gigawatt-scale AI workloads. J.P. Morgan served as the lead bookrunner for the landmark transaction, with Goldman Sachs acting as bookrunner.
“The investment-grade market has historically not been available to finance project-level data center construction,”said Asher Genoot, CEO of Hut 8. “Together with our River Bend offering, this establishes the ability of our data center projects to access deep, low-cost investment-grade financing markets and demonstrates a repeatable model for funding construction-stage digital infrastructure.”
- Capital Raised: $4.25 Billion investment-grade project debt completed (6.129% senior secured notes due 2042).
- Credit Validation: Rated Baa2 by Moody’s Investors Service.
- Power & Scale: 352 MW of critical IT capacity (utilizing ~500 MW of utility capacity), built on a 521-acre site in Nueces County, Texas.
- Architecture: Purpose-built AI factory customized for NVIDIA DSX high-density reference frameworks.
- Credit Anchor: Backed by a 15-year lease to an unnamed investment-grade tenant rated AA- or higher.
- Structure: 100% non-recourse to Hut 8 Corp., fully amortizing, and entirely non-dilutive to equity holders.
- Cumulative Track Record: Total investment-grade debt raised across River Bend and Beacon Point totals $7.5 Billion.
- Wall Street Backing: Underwritten with J.P. Morgan acting as lead bookrunner alongside Goldman Sachs.
🌐 Analysis
The financing is notable because it suggests institutional debt markets are becoming increasingly comfortable funding large-scale AI infrastructure projects before construction is completed. Unlike many AI infrastructure announcements that rely on venture funding, private credit, or equity issuance, Beacon Point secured investment-grade financing supported by a long-term lease with a highly rated tenant. The involvement of J.P. Morgan, Goldman Sachs, and Moody’s investment-grade rating provides additional validation that sophisticated capital markets participants view the project structure as credible.
That said, Beacon Point remains a large-scale project that must still navigate execution risks common to AI infrastructure development. At 352 MW, the campus ranks among the larger AI-focused facilities currently under development in North America. While the financing appears secure, successful delivery will depend on power infrastructure, utility interconnection, equipment availability, labor, and construction execution. Hut 8 itself is also undergoing a transformation from its roots as a Bitcoin mining company into a broader energy and AI infrastructure developer, making Beacon Point an important test of the company’s ability to scale beyond its historical business model.
The project also highlights the broader evolution of AI infrastructure financing. Recent announcements from Crusoe, DayOne, CoreWeave, Applied Digital, and Stargate-related developments demonstrate that access to power and capital have become the primary determinants of AI data center growth. Beacon Point shows that investment-grade project finance may emerge as a new funding model for large AI campuses, potentially expanding the pool of capital available for future AI factory development.
| Profile: Hut 8 Corp. | |
|---|---|
| Headquarters | Miami, Florida, USA |
| Ticker | NASDAQ: HUT, TSX: HUT |
| CEO | Asher Genoot |
| Origins | Founded as a digital asset and Bitcoin mining operator |
| Current Strategy | Energy infrastructure, AI data centers, HPC and digital infrastructure |
| Beacon Point | A massive 1 GW total capacity campus in Nueces County, Texas; Phase 1 delivers a 15-year, 352 MW IT lease designed to NVIDIA DSX reference architecture |
| River Bend Project | 1 GW utility capacity site in Louisiana; Phase 1 features a 15-year, 245 MW IT data center lease |
| Contract Lease Value | $16.8 Billion aggregate base-term revenue ($9.8B Beacon Point + $7B River Bend), scaling to $25.1B with renewal options |
| Total Project Financing Raised | $7.5 Billion total in investment-grade, non-recourse senior secured notes ($4.25B for Beacon Point + $3.25B for River Bend) |
| Strategic Partners | Financial: J.P. Morgan, Goldman Sachs, Coatue Management ($150M investment) Infrastructure: Macquarie Group, Fluidstack, Vertiv, and Jacobs |
| Business Focus | AI infrastructure, power-first development, greenfield hyperscale, HPC and ASIC compute |
