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Bitcoin mining giant Hut 8 announced a $150 million strategic funding from Coatue to emerge as a “leader in the AI infrastructure market.”
Miami-based Bitcoin mining firm Hut 8 announced on Monday it has raised $150 million to bolster its data center capabilities for artificial intelligence (AI).
The funding, structured through convertible notes with an 8% annual interest rate, aims to support Hut 8’s expansion into AI infrastructure to meet growing market demand and position itself as a leader in the sector. While specific details on the location of Hut 8’s new platform are unclear, the funding is expected to help the company address “unmet demand and emerge as a leader in the AI infrastructure market.”
Apart from operations in the U.S., Hut 8 also operates several crypto mining sites in Canada, but has scaled back its presence there recently due to rising energy costs.
Addressing the deal, Hut 8 chief executive Asher Genoot said the proceedings will allow the company to unlock “significant opportunities and connectivity to the broader space as we enter this next phase of growth.”
“We are thrilled to be partnering with Coatue, given the firm’s deep expertise and long track record of investments in the AI ecosystem,” said Genoot
The convertible notes issued will have an initial term of five years, with options for three one-year extensions, offering flexibility in repayment terms, the press release reads. Coatue’s latest investment isn’t its first venture into the AI industry as the investment manager has previously backed a variety of AI firms, including OpenAI and CoreWeave.
As crypto.news reported previously, Hut 8 increased its revenue to $60.6 million for the six months ending Dec. 31, 2023. The company’s earnings report also highlighted a 32% revenue increase and a significant rise in net income to $6.2 million, compared to the prior period’s net loss.