Hut 8 issues $3 billion in investment-grade bonds to finance AI data centers associated with Google
According to Bloomberg, a project by Bitcoin mining company Hut 8 Corp is issuing investment-grade secured bonds to fund its data center construction associated with Google (Alphabet Inc.).
The bonds have a maturity date of 2042, with an initial price guidance of 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.
The 600,000 square foot project will generate revenue through a 15-year lease agreement worth approximately $7 billion signed 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 transforming into an energy and digital infrastructure company and holds a controlling interest in a U.S. Bitcoin company (associated with Eric Trump and Donald Trump Jr.).
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