Hut 8 has priced $4.25 billion in senior secured notes to finance a massive artificial intelligence data center project in Texas. This is a major step in the company’s ongoing shift from bitcoin mining toward building power-backed digital infrastructure.
The company’s subsidiary, Beacon Point DC LLC, priced a private offering of 6.129% senior secured notes due in 2042. These notes are investment grade and will fund the Beacon Point data center in Nueces County, Texas. The planned campus includes six data halls with 352 megawatts of critical IT capacity, built on about 521 acres. An on-site substation is also part of the plan.
Lease and Financing Details
Hut 8 says the data center will be leased to a tenant with an AA- rating or higher. The company hasn’t named the tenant yet. The financing is structured at the project level and is non-recourse to Hut 8. That means note holders have claims against Beacon Point DC LLC and its assets, not the wider parent company.
The offering is expected to close on June 9, 2026, depending on market conditions. Interest payments will be made semiannually on May 30 and November 30, starting November 30, 2026. The notes mature on November 30, 2042. The debt is fully amortizing, with principal payments starting on May 30, 2030. Proceeds will also cover debt service reserves and fees tied to the offering.
Strategic Shift for Bitcoin Miners
Hut 8 describes itself as an energy infrastructure platform that combines power, digital infrastructure, and computing for energy-intensive technologies. This Beacon Point financing shows how bitcoin mining companies are using their power expertise to enter AI and high-performance computing markets.
Demand for data center capacity is accelerating fast. Access to electricity is becoming a central constraint for AI infrastructure. For Hut 8, the Texas project converts that demand into a long-term, contracted development backed by investment-grade project debt. It’s a natural progression for a company that started in bitcoin mining but now sees bigger opportunities in powering AI.
