Hut 8 Corp. (NASDAQ, TSX: HUT) announced the closing of a $3.25 billion offering of 6.192% senior secured notes due 2042 through its subsidiary Hut 8 DC LLC. The notes received BBB− ratings with a Positive Outlook from S&P Global Ratings and BBB− with a Stable Outlook from Fitch Ratings.

The company stated this represents the first investment-grade construction bond issued for a single-sponsor data center project. The proceeds will finance development and construction of a 245-megawatt data center at Hut 8's River Bend campus, fund a $184 million distribution to Hut 8 representing return of prior equity contributions, and establish debt service reserves.

The notes feature a 16.5-year tenor structured to fully amortize over the construction period and a 15-year contracted lease term, eliminating refinancing requirements. The offering was reportedly oversubscribed and priced inside initial guidance.

"Closing this first-of-its-kind financing is the result of decisions made long before we engaged the capital markets," said CEO Asher Genoot. CFO Sean Glennan noted the structure combines "investment-grade pricing, project-level non-recourse leverage, and covenant flexibility."

J.P. Morgan served as lead bookrunner, with Goldman Sachs and Morgan Stanley as joint bookrunners. The financing structure provides non-recourse funding without dilution to shareholders, according to the company.

Hut 8 describes itself as an energy infrastructure platform integrating power, digital infrastructure and compute services for energy-intensive applications including artificial intelligence and high-performance computing.