Bitcoin miner Hut 8 said Sept. 28 it had closed a four-year, $1 billion senior secured credit line, with Hut 8 Corp. named as borrower. The agreement closed Sept. 24 with no amounts outstanding and includes a $1 billion letter-of-credit sublimit within the overall commitment. It can provide cash for site development or letters of credit backing interconnection deposits and obligations to utilities and equipment vendors, reducing the cash Hut 8 must post as collateral. The facility is also described as a $1.07 billion secured revolver supporting borrowing or letters of credit. Certain restricted subsidiaries guarantee the obligations, while first-priority liens cover substantially all assets of the borrower and guarantors, subject to exclusions. Hut 8 reported $233.6 million in cash on its June 30 balance sheet, with restricted funds listed separately. The company said the facility can bridge interim development needs while it determines when to arrange longer-term project financing. Its earlier $7.5 billion financing for the River Bend and Beacon Point AI campuses was described as non-recourse project financing, meaning the new facility could create separate secured obligations at the parent and guarantor level. Term SOFR loans carry an initial margin of 1.75 percentage points above the benchmark, adjustable between 1.50 and 2.00 points based on Hut 8's debt-to-market-capitalization ratio. The agreement limits certain additional debt and liens and introduces a minimum-liquidity covenant beginning with the quarter ending March 31, 2027. The threshold is 40% of commitments before a defined stabilization date and 25% afterward, subject to the agreement's liquidity definition and equity cure rights. The eventual amount drawn or issued in letters of credit will determine the scale of Hut 8's parent-level obligations.