Hut 8 subsidiary plans $4.25 billion bond offering for Texas data center

Beacon Point DC LLC, a subsidiary of Hut 8 Corp. (NASDAQ: HUT), announced plans to offer $4.25 billion in senior secured notes due 2042 through a private placement to qualified institutional buyers.

The company intends to use proceeds from the bond offering to finance development and construction of a data center facility in Nueces County, Texas. The project will include six data halls with 352 megawatts of critical IT capacity on approximately 521 acres, along with construction of an on-site substation.

The data center will be leased to a tenant with an investment-grade credit rating of AA- or higher under a lease agreement already in place. Additional proceeds will fund debt service reserves and cover offering expenses.

The notes will be offered under Rule 144A to qualified institutional buyers in the United States and under Regulation S to non-U.S. persons outside the United States, according to the announcement made June 4.

The offering remains subject to market conditions and other factors. Beacon Point DC LLC operates as an indirect wholly-owned subsidiary of Hut 8 Corp.

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