Summary
- Hut 8 is issuing secured bonds due in 2042 to expand its AI infrastructure.
- The bond sale aims to raise at least $3 billion to fund construction of a 245-megawatt data center linked to the cloud business of Alphabet, Google's parent.
- The data center is set to generate revenue through a roughly $7 billion 15-year lease agreement with Fluidstack, backed by Google's financial guarantee.
Forecast Trend Report by Period
Bitcoin miner Hut 8 is issuing bonds to expand its artificial intelligence infrastructure.
Bloomberg reported on April 27 that the company is marketing debt to help finance construction of a data center linked to the cloud business of Alphabet Inc., Google's parent.
The secured bonds would mature in 2042 and are being discussed at about 2.13 percentage points above the benchmark rate, according to the report. The project is targeting at least $3 billion in financing.
The proceeds will be used for a 245-megawatt data center planned in St. Francisville, Louisiana. Goldman Sachs, JPMorgan Chase & Co. and Morgan Stanley are leading the project.
The facility is set to generate revenue under a roughly $7 billion, 15-year lease agreement with cloud computing company Fluidstack. Google will provide a financial guarantee for the contract.
An Entergy subsidiary will supply power to the data center.
Hut 8 is expanding beyond its legacy Bitcoin mining business into energy and digital infrastructure. Investment in data centers has been rising as companies move to meet growing AI demand.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
