Hut 8 Issues $3 Billion Investment-Grade Bonds to Finance Google-Linked AI Data Center

On April 27, Bloomberg reported that Bitcoin mining company Hut 8 Corp is issuing investment-grade secured bonds to fund the construction of its data center associated with Google (Alphabet Inc.). The bonds have a maturity date of 2042, with an initial price guidance approximately 2.13 percentage points above the benchmark yield. Previous reports indicated that the project plans to issue at least $3 billion in high-grade bonds for the construction of a 245-megawatt facility located in St. Francisville, Louisiana. The issuance is being managed by Goldman Sachs, JPMorgan, and Morgan Stanley. This 600,000 square-foot project will generate revenue through a 15-year lease agreement valued at approximately $7 billion with cloud computing startup Fluidstack, with Google providing financial backing for the lease payments and other obligations. A subsidiary of Entergy Corp. will supply power to the project under a service agreement. Hut 8 is a publicly traded Bitcoin mining company that is transitioning into an energy and digital infrastructure firm and holds a controlling interest in a U.S. Bitcoin company associated with Eric Trump and Donald Trump Jr.