Question · Q4 2025
Robert Buck asked whether Hut 8 requires credit enhancements, similar to Google's role in the Fluidstack deal, for future transactions, or if it would consider direct partnerships with large language model (LLM) counterparties, and the potential gating issues.
Answer
CEO Asher Genoot explained that Hut 8's approach involves balancing exposure across investment-grade and non-investment-grade counterparties to ensure durable and reliable cash flows, which impacts cost of capital and financing. While optimizing for investment-grade partners, he noted there's always a place for high-growth companies in the portfolio, emphasizing risk allocation rather than a binary choice, and currently maintaining a heavy lenience towards investment-grade counterparties.
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