Hut 8’s $7 billion cash balance shrinks to $233 million outside its AI projects
Hut 8 reported over $7 billion of cash, restricted cash, and cash equivalents at June 30, however its Aug. 4 quarterly filing exhibits that solely $233.6 million was unrestricted and obtainable for common company use. The different $6.8 billion, or 96.7% of the whole, was restricted.
That distinction makes Hut 8’s headline balance a deceptive measure of the corporate’s versatile liquidity if its giant AI data-center projects run late or over funds.
The restricted balance principally consists of proceeds from notes issued for the River Bend and Beacon Point AI data-center developments and held in building and debt-service reserve accounts required by their indentures. It additionally contains an unquantified quantity supporting industrial letters of credit score.
That cash can fund building and associated debt service, however it can’t be handled like unrestricted parent-company cash.
The financing additionally limits Hut 8’s direct exposure to the mission debt. River Bend’s $3.25 billion of 6.19% notes are obligations solely of Hut 8 DC LLC, whereas Beacon Point’s $4.25 billion of 6.13% notes belong solely to Beacon Point DC LLC. Each word package deal stays remoted on the subsidiary degree, with Hut 8 Corp totally outside the assure construction.
Both projects start paying curiosity in November 2026, with principal scheduled to begin in May 2028 for River Bend and in May 2030 for Beacon Point. Hut 8 leaves open what delay or cost-overrun situations would require it to contribute further dad or mum fairness past the restricted accounts. That threshold is the central unaddressed matter.
Hut 8’s $177.1 million second-quarter net loss included a $138.6 million loss on digital property that the corporate described as primarily unrealized.
Under its revised non-GAAP definition, which excludes digital-asset mark-to-market modifications, adjusted EBITDA was constructive $10.4 million, and it was unfavorable $94.6 million when these modifications have been included. Both figures are non-GAAP displays, so cash move requires its separate measure.
Cash move presents a much less dramatic image. Hut 8 used $32.8 million of working cash within the first half and $27.2 million within the first quarter, implying second-quarter working cash use of about $5.6 million.
The firm recorded $51.2 million of curiosity expense within the quarter, partly offset by $27.1 million of curiosity revenue generated primarily by unused River Bend and Beacon Point proceeds. Its maturity desk confirmed no long-term debt principal due within the second half of 2026, with $235.1 million due in 2027.
That 2027 quantity features a $200 million, 7% FalconX mortgage due April 30. The Bitcoin-backed facility has a 130% margin-call threshold and a 105% liquidation threshold, with lender recourse restricted to the pledged Bitcoin.
Hut 8 reported 17,316 Bitcoin throughout its consolidated group, with 9,314 held by Hut 8 and eight,002 held by American Bitcoin. Separate standing buckets confirmed 9,376 Bitcoin in custody, 3,090 pledged for miner purchases, and 4,850 pledged as collateral.
Hut 8 leaves these buckets unallocated between the 2 firms, and the way a lot Bitcoin backs FalconX stays undisclosed as nicely.
Hut 8 has $233.6 million of general-purpose cash, devoted swimming pools for its projects and no scheduled project-note principal till 2028, however its curiosity burden and 2027 Bitcoin-backed maturity stay the clearest near-term checks.
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