Hut 8 project sells bonds to fund Google-backed data center

Investing.com -- A Hut 8 Corp. project is selling investment-grade bonds on Monday to fund the construction of a data center tied to Alphabet Inc.'s Google.

The project is selling secured bonds due 2042, with initial price talk at a yield of about 2.13 percentage points above the benchmark, according to a Bloomberg report Monday.

The project is planning to sell at least $3 billion of high-grade bonds to finance a 245-megawatt facility in St. Francisville, Louisiana. Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are running the deal.

Hut 8's 600,000-square-foot project is set to generate revenue from a 15-year lease with cloud-computing startup Fluidstack Ltd. valued at about $7 billion. Google is providing a financial backstop, which covers the lease payments and other obligations. An Entergy Corp. subsidiary will provide electricity for the project under a services agreement.

You May Also Be Interested In

• Lucid Capital Markets Starts Hut 8 Mining Corp. (HUT) at Buy
• ZenaTech raises Plurilock Security stake to 12% with new share purchase
• A.O. Smith executive chairman to retire, CEO to assume chairman role