Bitcoin mining giant Hut 8 has secured $150 million in funding from Coatue to expand its AI infrastructure capabilities. The Miami-based firm announced this on Monday, aiming to position itself as a leader in the AI market.
The funding, structured through convertible notes with an 8% annual interest rate, will support Hut 8’s data center expansion. The initiative seeks to meet growing market demand for AI infrastructure. Hut 8 operates both in the U.S. and Canada but has recently reduced its Canadian presence due to rising energy costs.
Hut 8 CEO Asher Genoot highlighted that the proceeds would unlock significant opportunities and connectivity within the broader tech space. The convertible notes come with a five-year term and options for three one-year extensions, providing repayment flexibility. Coatue has a notable history of investing in AI, including OpenAI and CoreWeave.
Hut 8 reported a 32% revenue increase, reaching $60.6 million for the six months ending Dec. 31, 2023, and a significant rise in net income to $6.2 million. This funding marks a strategic move to ensure Hut 8’s long-term growth and leadership in the evolving AI infrastructure market.
