Bitcoin miner Hut 8 has recently announced a $150 million investment from Coatue Management, a technology-focused investment firm. This funding will be used to accelerate the growth of its data center portfolio, supporting large-scale crypto-mining operations and artificial intelligence compute. As the demand for data center facilities increases due to the rapid growth of generative AI, Hut 8 aims to leverage its expertise in energy infrastructure to become a leader in the AI infrastructure market.
Hut 8 currently operates 19 sites, including Bitcoin mining, hosting, and managed services locations in Canada and the US, as well as high-performance computing data centers and power generation assets. CEO Asher Genoot expressed excitement about the partnership with Coatue, highlighting the firm’s expertise and investment track record in the AI ecosystem. He believes this collaboration will unlock significant opportunities for the company as it enters a new phase of growth.
The investment from Coatue comes at a crucial time for Bitcoin miners, many of whom are pivoting towards AI to offset declining revenues. Core Scientific, for example, recently secured a $3.5 billion contract with AI startup CoreWeave. The convertible note from Coatue will pay 8% interest annually over a five-year term, with the option to extend for up to three additional one-year periods. It will be a senior unsecured obligation of the company, with an initial conversion price set at a 45% premium to the 10-day volume-weighted average price.
Overall, Hut 8’s partnership with Coatue Management signals a significant step towards expanding its data center portfolio and establishing itself as a key player in the AI infrastructure market. With the demand for energy-intensive facilities on the rise, Hut 8 aims to capitalize on its expertise in energy infrastructure to meet this increasing demand. As Bitcoin miners navigate a shifting landscape, investments in AI infrastructure could be a strategic move to drive growth and stay competitive in the evolving market.
