Hut 8 a Bitcoin mining company secures 150 million investment during surge in AI industry

Coatue Management, a tech-focused investment manager, is set to invest $150 million into Bitcoin miner Hut 8 Corp as investors take advantage of the AI boom. The investment will be made through a convertible note and Hut 8 will have the option to extend the note for up to three one-year periods. The note will pay out 8% annually for a starting term of five years. The investment is expected to be completed by July 11. Hut 8, one of the largest public miners, has a market capitalization of $1.1 billion. The company was one of the first to enter the high-performance computing business, which is now in demand for generative AI models and applications. Other crypto miners, such as Core Scientific and TeraWulf, have also entered into deals with AI companies. Coatue’s Robert Yin mentioned the scarcity of high-quality power assets and praised Hut 8 for its attractive and expandable asset pipeline. Following the Bitcoin halving in April, mining firms have been seeking ways to stay competitive amidst profitability challenges. Hut 8 has expressed its plans to expand its self-mining operations and revenue streams.