Hut 8 recently announced that it has secured a significant $150 million investment from Coatue Management, leading to a 4% increase in its stock price. This investment has not only benefited Hut 8 but has also caused other Bitcoin miners providing AI-related services to experience a surge in their stock values. For instance, Soluna Holdings (SLNH) saw a 17% jump, while Applied Digital (APLD) rose by 10%.
The investment received by Hut 8 signifies a trend in which Bitcoin miners are expanding their computational capabilities to cater to AI firms. This move aims to boost revenues, which have been negatively impacted by the recent Bitcoin halving event. The deal between Hut 8 and Coatue will enable the former to establish AI-related infrastructure with the help of convertible notes. These notes come with an 8% interest rate and a conversion rate of $16.395 per share.
Hut 8’s CEO, Ashner Genoot, expressed his optimism about the partnership with Coatue, stating, “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.” This collaboration is vital for Hut 8 to enhance its offerings and keep up with the evolving needs of AI firms.
The demand for AI computing services is on the rise, leading to a shortage of suitable service providers. Existing data center operators are struggling to meet the escalating demands for AI processing power. As a result, Bitcoin miners have emerged as a viable option for AI firms seeking reliable and efficient computational capacity.
Coatue’s Partner, Robert Yin, highlighted the importance of high-quality power assets in the current market scenario. He praised Hut 8 for its deep pipeline of expansion assets and acknowledged the company’s strong relationships with power suppliers in the regions where it operates. These factors make miners like Hut 8 an attractive choice for AI firms looking to optimize their operations.
In a similar vein, CoreWeave, an AI firm backed by Coatue, recently struck a massive $1 billion deal with Bitcoin miner Core Scientific. This agreement entails the provision of 200 megawatts of power to support CoreWeave’s AI operations. Such collaborations between AI firms and Bitcoin miners underscore the growing synergy between the two sectors in meeting the evolving computational needs of modern businesses.