🌎 Hut 8 Secures $150M to Enhance AI Data Centers and Expand Operations

Bitcoin mining giant Hut 8 has announced a $150 million strategic funding from Coatue to enhance its data center capabilities for artificial intelligence (AI). This Miami-based Bitcoin mining firm aims to leverage the funding to expand its AI infrastructure and meet growing market demand.

The funding, structured through convertible notes with an 8% annual interest rate, is designed to support Hut 8’s growth into the AI sector. Although specific details on the location of Hut 8’s new platform remain unclear, the investment is expected to help the company address unmet demand in the AI infrastructure market.

In addition to its U.S. operations, Hut 8 also runs several cryptocurrency mining sites in Canada. However, the company has recently scaled back its presence there due to rising energy costs.

Hut 8’s chief executive, Asher Genoot, stated that the funding will enable the company to unlock significant opportunities and enhance connectivity within the broader AI and crypto space. “We are thrilled to be partnering with Coatue, given their deep expertise and long track record of investments in the AI ecosystem,” said Genoot.

The convertible notes issued have an initial term of five years, with options for three one-year extensions, offering flexibility in repayment terms. Coatue’s investment history includes backing various AI firms such as OpenAI and CoreWeave.

Hut 8 has shown impressive financial growth, increasing its revenue to $60.6 million for the six months ending December 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.