Hut 8 (NASDAQ: HUT) said its subsidiary Beacon Point DC LLC priced $4.25 billion of 6.129% senior secured notes due Nov. 30, 2042, to finance its Beacon Point data center project in Nueces County, Texas. The notes were priced on Thursday, June 4, 2026 and are expected to close on June 9, subject to market and other conditions.
The financing is structured without recourse to Hut 8, meaning the debt obligation is placed at the project level and not on the parent company’s balance sheet. The notes are fully amortized and principal payments begin on May 30, 2030. Interest payments are due semiannually on May 30 and November 30, beginning November 30, 2026.
The notes are secured by first priority liens on substantially all of the assets of the issuer, as well as a pledge of equity interests held by Beacon Point Holding LLC, the direct parent of the issuer. Hut 8 described the notes as investment grade. The facilities will be leased to an unnamed tenant that Hut 8 described as a high investment grade company rated AA- or higher.
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Hut 8 said the proceeds will fund the development and construction of a turnkey data center, construction of a substation on the property, reserves for debt service and fees related to the offering. The project includes six data rooms with 352 MW of critical IT capacity on approximately 521 acres.
In early May, Hut 8 separately announced the commercialization of the first phase of Beacon Point through a 15-year, 352 MW IT lease with a base term contract value of $9.8 billion. That lease could reach a total value of up to $25.1 billion if all renewal periods are exercised.
Beacon Point is the second campus of Hut 8’s AI data center developed under its all-new, energy-first model. The company said key interconnection and site approvals have been obtained for 1,000 MW of total capacity at the campus. Hut 8 said the first two phases together are expected to represent approximately $17 billion of capital investment, supporting around 1,900 construction jobs and 230 permanent operations roles.
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With the offering price of $4.25 billion and 15-year lease revealed, Beacon Point’s 352 MW first phase now has project financing committed and revenue contracted within a South Texas campus that Hut 8 says can scale to 1 GW.