Bitcoin miner Hut 8 Corp recently secured a $150M investment from Coatue Management, a technology-focused investment manager.
As investors continue to capitalize on artificial intelligence (AI) growth, Coatue Management, a technology-focused investment manager, will allocate $150 million to the Bitcoin (BTC) miner Hut 8 Corp.
Hut 8 Corp disclosed the multimillion-dollar investment from Coatue Management, owned by billionaire Philippe Laffont, on June 24. The investment will be made through a convertible note.
The Bitcoin miner stated that the note will pay 8% annually with a five-year initial tenure. Hut 8 can extend the note for a maximum of three one-year periods. The investment will be a senior unsecured obligation of Coatue Management.
According to Laffont, they perceive the Bitcoin miner as “well-positioned” to capitalize on potential opportunities and expedite the development of new computing capacity.
“We are committed to supporting innovators advancing AI and believe that compute capacity is crucial to unlocking significant growth across the ecosystem.”
The anticipated completion date is July 11 of this year. Hut 8 submitted the investment agreement with Coatue to the United States Securities and Exchange Commission on June 21.
Hut 8 is one of the largest public miners in computing capacity. Its current market capitalization is $1.1 billion.
Artificial intelligence and Cryptocurrency mining
Hut 8 was among the first in the crypto industry to engage in the high-performance computing sector, which is currently in demand to power generative AI models and applications.
Other cryptocurrency miners, such as Core Scientific and TeraWulf, have negotiated with AI companies or hosted data centers. The stock prices of both of the companies above experienced an increase after the completion of AI-focused transactions.
Hut 8 has built a “deep pipeline” of highly attractive and expandable assets, according to Robert Yin, a partner at Coatue, who stated that the broader market is beginning to appreciate the “scarcity of high-quality power assets.”
Since the Bitcoin halving in April, many mining firms have sought strategies to enhance their competitiveness in the face of profitability challenges.
At this juncture, Hut 8 intended to broaden the purview of its diversified revenue streams and self-mining operations.
