Key Points
- Hut 8, a Bitcoin miner, has secured a $150 million investment from Coatue Management.
- The investment will be used to develop Hut 8’s potential in the artificial intelligence infrastructure market.
Hut 8, a known Bitcoin miner, has revealed that it has entered into a definitive agreement with a fund run by Coatue Management. Through a convertible note, Coatue will invest a total of $150 million into the company.
Advancing AI Infrastructure
Hut 8 aims to use its expertise in developing and operating complex energy infrastructure to meet the unmet demand in the artificial intelligence infrastructure market. The company’s goal is to emerge as a leader in this field.
Philippe Laffont, Founder and Portfolio Manager of Coatue, stated that they are dedicated to supporting innovators in AI. He believes that compute capacity is a crucial element for unlocking significant growth in the ecosystem. Laffont also expressed confidence in Hut 8’s potential to accelerate new compute capacity.
Intersection of AI and Crypto
Juan Leon, a Senior Crypto Research Analyst, sees the convergence of AI and crypto as a mega-trend. This trend could potentially add up to $20 trillion to the global economy.
Hut 8 CEO Asher Genoot expressed excitement about partnering with Coatue. He believes that Coatue’s deep expertise and long history of investments in the AI ecosystem will help Hut 8 unlock significant opportunities. Coatue will have the option to convert the note into shares of common stock at an initial conversion price of $16.395 per share.
Hut 8 has a portfolio of 19 sites and ranks second among listed miners in terms of Bitcoin holdings. As of March 31, the company held 9,102 bitcoins in reserve, worth approximately $557 million. The company’s stock was trading up 5% at the time of the announcement, while the rest of the mining sector was selling off due to a drop in the price of Bitcoin.