Hut 8 locked in $16.8 billion in contracted lease revenue this week across two hyperscale AI campuses — River Bend and Beacon Point — totaling 597 megawatts of data center capacity. Separately, the company refinanced its $200 million Bitcoin-backed credit facility with FalconX, slashing the fixed rate from 9% to 7% and freeing up roughly 3,300 BTC that had been used as collateral.
The AI campus deals
The Beacon Point lease brings 352 MW of IT capacity and a base-term value of $9.8 billion. River Bend adds 245 MW and $7 billion in base-term value, with Google acting as a financial backstop. Both are triple-net, take-or-pay contracts — meaning Hut 8 collects rent regardless of whether tenants use the power. That shifts a lot of execution risk onto the landlord, but the payoff is enormous if Hut 8 can deliver the facilities on time and on budget.
The FalconX refinancing
The new FalconX facility is a 364-day Bitcoin-backed loan with limited recourse to the pledged BTC. It includes a no-rehypothecation covenant, fixed loan-to-value thresholds, and — notably — no LTV ratchet triggered by Bitcoin price declines. That last bit is key: if BTC drops, Hut 8 won't get margin-called. The rate cut from 9% to 7% saves the company about $4 million a year in interest, and unencumbering those 3,300 BTC gives them more flexibility to deploy capital elsewhere.
Q1 earnings and the big loss
Hut 8 reported $71 million in Q1 revenue, with $66 million coming from its Compute segment. The net loss hit $253 million, driven largely by $295 million in unrealized digital-asset losses. That's an accounting artifact — paper losses on BTC holdings — not a cash drain. Still, the headline loss is ugly, and the company will need to show it can turn those massive lease contracts into steady cash flow.
Risks ahead
The full financing stack includes $3.25 billion in River Bend notes that are non-recourse to Hut 8 and the $200 million BTC-backed facility. That reduces reliance on equity sales or dumping Bitcoin to fund operations. But the risks are real: delivery delays, interconnection hurdles, construction cost overruns, tenant concentration, and the long timeline to revenue. Plus, any sharp drop in Bitcoin's price could still affect the value of the collateral backing the FalconX loan, even if it doesn't trigger a margin call. The 364-day term means Hut 8 will need to refinance or repay by mid-2027.
