Hut8 issues $3 billion in investment-grade bonds to finance AI data centers affiliated with Google

BlockBeats News, April 27 — According to Bloomberg on April 27, a project by Bitcoin mining company Hut 8 Corp is issuing investment-grade secured bonds to finance its data center construction related to Google (Alphabet Inc.). The bonds have a maturity date until 2042, with an initial price guide approximately 2.13 percentage points above the benchmark yield. Previously, it was reported that the project plans to issue at least $3 billion in high-grade bonds to build a 245-megawatt facility in St. Francisville, Louisiana. The issuance is managed by Goldman Sachs, JPMorgan Chase, and Morgan Stanley.

This 600k-square-foot project will generate revenue through a 15-year lease agreement valued at about $7 billion with cloud computing startup Fluidstack, with Google providing financial guarantees for the lease payments and other obligations. Entergy Corp.'s subsidiary will supply power to the project under a service agreement. Hut 8 is a publicly traded Bitcoin mining company transitioning into an energy and digital infrastructure firm, and holds a controlling stake in the American Bitcoin company (associated with Eric Trump and Donald Trump Jr.).