Key Takeaways:
- Coatue Management invests $150 million in crypto miner Hut 8 to enhance its AI infrastructure, boosting shares of Hut 8, Soluna Holdings, and Applied Digital.
- The trend of repurposing bitcoin mining infrastructures for AI services is growing due to their computing power and power supplier relationships.
- Coatue’s investments in Hut 8 and CoreWeave reflect a broader interest in leveraging bitcoin mining for AI, highlighting a shift in the industry and potential for more mergers and acquisitions.
Coatue Management is investing $150 million in crypto miner Hut 8 to enhance its AI infrastructure, boosting Hut 8’s shares and other related stocks like Soluna Holdings and Applied Digital.
Coatue also invests in CoreWeave, a cloud-computing firm trying to acquire Hut 8’s competitor, Core Scientific.
We are incredibly excited to announce a $150 million strategic investment from @coatuemgmt to partner in building a next generation AI infrastructure platform. This investment will accelerate growth in our data center portfolio and provides access to Coatue's extensive network of… pic.twitter.com/BYvpHx50PS
— Hut 8 (@Hut8Corp) June 24, 2024
This reflects a trend of bitcoin mining infrastructures being repurposed for AI services due to their computing power and power supplier relationships.
The funding for Hut 8 will be in convertible notes with an 8% annual interest rate and a conversion rate of $16.395 per share.
Hut 8’s stock increased by nearly 4%, and Soluna Holdings and Applied Digital also saw significant gains.
Bitcoin miner Hut 8 gets $150 million investment from Coatue to advance AI infrastructure market https://t.co/5mBkAoeWIL
— The Block (@TheBlock__) June 24, 2024
This trend is expected to lead to more mergers and acquisitions in the industry.
Recently, CoreWeave made a significant deal with Core Scientific for AI services and attempted to buy the company, which was declined.
Coatue’s investments in both Hut 8 and CoreWeave highlight the growing interest in leveraging bitcoin miners’ infrastructures to meet the rising demand for AI computing capacity, which traditional data centers are struggling to support.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.
Check Victor out on:
