Bitcoin miner Hut 8 secures $150m funding to build AI infrastructure platform

Bitcoin mining giant Hut 8 announced that it has received $150 million in strategic funding from Coatue to become a “leader in the AI ​​infrastructure market.”

Miami-based Bitcoin mining company Hut 8 announced Monday that it has raised $150 million to support its data center capabilities for artificial intelligence (AI).

The financing, structured through convertible notes bearing an interest rate of 8% per annum, aims to support Hut 8’s expansion into AI infrastructure to meet growing market demand and position itself as a leader in the industry. While specific details regarding the location of Hut 8’s new platform are unclear, the funding is expected to help the company “meet unmet demand and emerge as a leader in the AI ​​infrastructure market.”

In addition to operations in the United States, Hut 8 also operates several crypto mining sites in Canada, but has recently reduced its presence there due to rising energy costs.

Addressing the deal, Hut 8 managing director Asher Genoot said the transactions would allow the company to unlock “significant opportunities and connectivity to the wider area as we enter the next phase of growth”.

“We are excited to partner with Coatue, given the firm’s deep expertise and long history of investment in the AI ​​ecosystem,” Genoot said.

The press release stated that the initial maturity of the issued convertible bonds will be five years, with three one-year extension options, providing flexibility in repayment terms. Coatue’s latest investment is not the investment manager’s first foray into the AI ​​industry, as it has previously backed several AI firms, including OpenAI and CoreWeave.

As crypto.news previously reported, Hut 8 grew its revenue to $60.6 million in the six months ending December 31, 2023. The company’s earnings report also reported a 32% year-over-year revenue increase and a significant increase in net income to $6.2 million. net loss of the previous period.