Why Is HUT Stock Sliding Over 2% Premarket Today?

• The company said the proceeds from the bond sale will primarily fund the development of the Beacon Point data center campus in Nueces County, Texas. 
• The offering is expected to close on June 9.
• The announcement comes a month after the company said that it had entered into a 15-year, $9.8 billion lease agreement with a high-investment-grade company.

Shares of Hut 8 Corp. (HUT) declined nearly 2.5% in premarket trading on Friday, shortly after the company announced a massive bond offering linked to a data center project in Texas.

The company said in a statement that its wholly-owned subsidiary, Beacon Point DC, had priced a $4.25 billion private offering of 6.129% senior secured notes due 2042.

The offering is expected to close on June 9, the company said.

Fundraise Details

The senior secured notes will carry a 6.129% annual interest rate, will mature in November 2042, and will begin amortizing in 2030. The company said that the debt is secured by the issuer's assets and equity interests but is non-recourse to Hut 8.

The energy infrastructure company said the proceeds from the bond sale will primarily fund the development of the Beacon Point data center campus in Nueces County, Texas, including six data halls totaling 352 megawatts of critical IT capacity and an on-site substation. The facility will be leased to an AA-rated or higher tenant.

The financing announcement comes about a month after the company said that it had entered into a 15-year, $9.8 billion lease agreement for 352 megawatts (MW) of IT capacity with a high-investment-grade company.

The bond offering attracted four times the intended amount in demand, receiving $17 billion in investor orders, according to a report from Investing.com that cited Bloomberg.

As per the report, the Texas facility has been fully leased to Nvidia Corp. (NVDA), although the company’s strategic communications director, Gautier Lemyze-Young, reportedly did not confirm the news, saying that the company did not “comment on rumors or speculation regarding tenant identity, or on tenant-specific profile information.”

HUT Stock: Retail Stance

On Stocktwits, retail sentiment around HUT stock was in the ‘neutral’ territory at the time of writing, with retail chatter increasing 47% in the past 24 hours, according to platform data.

One bullish user predicted a price rise to $131. HUT stock was trading at $124.50 at the time of writing.

Shares of the company have rallied 682% in the past year.

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