Hut 8 has secured 0 million from Coatue Management, causing its stock price to rise by at least 4%. Other Bitcoin miners who provide AI-related services also saw their stock values increase because of the news. Soluna Holdings (SLNH) jumped 17%, and Applied Digital (APLD) rose 10%. The investment depicts Bitcoin miners expanding their computational capabilities to AI firms. Miners are trying to increase revenues, which have taken a hit across the board because of the Bitcoin halving. Hut 8’s deal with Coatue will provide it with the financing needed to set up AI-related infrastructure. This deal will be funded via convertible notes, with an 8% interest rate and a conversion rate of .395 per share. “We believe this partnership will allow us to unlock significant opportunities and
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Hut 8 has secured $150 million from Coatue Management, causing its stock price to rise by at least 4%. Other Bitcoin miners who provide AI-related services also saw their stock values increase because of the news. Soluna Holdings (SLNH) jumped 17%, and Applied Digital (APLD) rose 10%.
The investment depicts Bitcoin miners expanding their computational capabilities to AI firms. Miners are trying to increase revenues, which have taken a hit across the board because of the Bitcoin halving.
Hut 8’s deal with Coatue will provide it with the financing needed to set up AI-related infrastructure. This deal will be funded via convertible notes, with an 8% interest rate and a conversion rate of $16.395 per share.
“We believe this partnership will allow us to unlock significant opportunities and connectivity to the broader space as we enter this next phase of growth,” said Hut 8 CEO Ashner Genoot.
AI firms are actively looking for more service providers because existing data center operators do not seem to meet their needs. As AI computing demands increase, existing data centers do not possess sufficient power to meet them. Thus, Bitcoin miners are the best option for AI firms to turn to.
Robert Yin, Partner at Coatue, mentioned, “The broader market is beginning to appreciate the scarcity of high-quality power assets, and Hut 8 has built a deep pipeline of highly attractive expansion assets.” Miners like Hut 8 possess the computational capacity needed by AI firms. They also hold attractive deals with power suppliers in the geographies they operate in, which AI firms need to operate economically.
Other miners have also benefitted largely from AI interest. Recently, CoreWeave, an AI firm backed by Coatue, signed a $1 billion deal with Bitcoin miner Core Scientific for 200 megawatts of power.