Bitcoin miner Hut 8 announced on Sept. 28 that it had closed a four-year, $1 billion senior secured credit line.

The facility gives the parent company room to borrow during site development and to back construction obligations with letters of credit. Its securities filing says no amounts were outstanding when the agreement closed on Sept. 24.

Hut 8 says letters of credit can support interconnection deposits and obligations to utilities and equipment vendors, reducing the cash it needs to post as collateral. The $1 billion letter-of-credit sublimit is contained within the overall commitment.

In effect, the line offers two ways to use a single pool of bank capacity: borrowing cash or securing eligible obligations.

Hut 8's June 30 balance sheet listed $233.6 million in cash, with restricted funds reported separately.

The line can help bridge interim development needs while Hut 8 decides when to arrange longer-term project financing, according to the company. That timing gives the parent a financing option while projects move through their earlier stages.

The new agreement names Hut 8 Corp. as borrower. Certain restricted subsidiaries guarantee its obligations, and first-priority liens cover substantially all assets of the borrower and guarantors, subject to exclusions.

Hut 8 described $7.5 billion of earlier financing for its River Bend and Beacon Point AI campuses as non-recourse project financing. Use of the new line could create secured obligations at the parent and guarantor level alongside those project structures.