Business context and reporting period
Hut 8 Corp. reported on September 28, 2026 that it entered into a senior secured revolving credit agreement on September 24, 2026. This is a financing update, not a periodic earnings report; it provides no operating results for a reporting period.
Key financial terms
- Facility size: Up to $1.07 billion outstanding, with a letter-of-credit sublimit of $1.07 billion.
- Availability and use: Borrowings may be repaid and reborrowed through the fourth anniversary of the closing date. Proceeds may be used for general corporate purposes and working capital.
- Outstanding balance: No amounts were outstanding at closing.
- Interest: At the company’s option, Adjusted Term SOFR (subject to a 0% floor) plus a margin of 1.50%–2.00%, or an alternate base rate plus 0.50%–1.00%. Initial margins are 1.750% for Term SOFR loans and 0.750% for ABR loans. Margins vary by the defined Consolidated Total Debt to Market Capitalization Ratio.
- Security and guarantees: Certain restricted subsidiaries guarantee the facility. The obligations are secured by a first-priority lien on substantially all assets of the company and guarantors, subject to exclusions.
- Liquidity covenant: Starting with the quarter ending March 31, 2027, minimum liquidity must be at least 40% of aggregate commitments before the defined Stabilization Date and 25% thereafter. The agreement provides conditional equity cure rights.
Changes versus prior period
The filing does not provide comparable prior-period financial results. It establishes a new revolving credit facility; the filing does not state that any prior facility was replaced or disclose a change in drawn debt.
Outlook, risks, and contingencies
The facility adds borrowing capacity but also imposes customary affirmative and negative covenants, including restrictions on additional debt, liens, mergers, affiliate transactions, and asset dispositions, subject to qualifications and limitations. Customary events of default include payment failures, covenant breaches, and specified bankruptcy or insolvency events. The filing provides no revenue, profit, cash flow, margin, or broader business guidance, and no quantified assessment of expected facility usage or interest expense.
Important facts for investors to verify
- Review Exhibit 10.1 for the full definitions, covenant calculations, exceptions, cure conditions, and events of default.
- Confirm how the Stabilization Date is determined and how the liquidity requirement will be measured.
- Monitor future borrowings, letters of credit, available capacity, and interest margins as the leverage-based pricing changes.
- Assess the scope of pledged assets and subsidiary guarantees, including applicable exclusions.