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, but its Aug. 4 quarterly filing shows that only $233.6 million was unrestricted and available for general corporate use. The other $6.8 billion, or 96.7% of the total, was restricted.That distinction makes Hut 8’s headline balance a misleading measure of the company's flexible liquidity if its large AI data-center projects run late or over budget.Hut 8 held $7.02 billion in cash at June 30, but 96.7% was restricted to project financing and related obligations.The restricted balance principally consists of proceeds from notes issued for the River Bend and Beacon Point AI data-center developments and held in construction and debt-service reserve accounts required by their indentures. It also includes an unquantified amount supporting commercial letters of credit.That money can fund construction and related debt service, but it cannot be treated like unrestricted parent-company cash.The financing also limits Hut 8’s direct exposure to the project debt. River Bend’s $3.25 billion of 6.19% notes are obligations solely of Hut 8 DC LLC, while Beacon Point’s $4.25 billion of 6.13% notes belong solely ...