Hut8 Issues $3 Billion Investment Grade Bond to Finance Google-affiliated AI Data Center

BlockBeats News, April 27th - According to Bloomberg's April 27th report, Bitcoin mining firm Hut 8 Corp is launching an investment-grade bond to fund its data center construction associated with Google (Alphabet Inc.). The bond matures in 2042 with an initial price guidance at about 2.13 percentage points above the benchmark yield. Previous reports indicated that the project planned to issue at least $3 billion in high-grade bonds to construct a 245-megawatt facility in St. Francisville, Louisiana. The issuance is led by Goldman Sachs, JPMorgan, and Morgan Stanley.

This 600,000-square-foot project will generate revenue through a 15-year, approximately $7 billion lease agreement with cloud computing startup Fluidstack, with Google providing financial guarantees for the lease payment and other obligations. A subsidiary of Entergy Corp. will provide 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 stake in a U.S. Bitcoin company (associated with Eric Trump and Donald Trump Jr.).