• Coatue Management invests $150 million into crypto miner Hut 8 for the purpose of building AI-related infrastructure
  • The deal benefited HUT shares, as well as data-center stocks related to bitcoin mining such as SHLN and APLD.
  • Coatue also owns CoreWeave, an enterprise that offers cloud computing and is in the process of buying Hut 8 competitor Core Scientific.

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BTC Price Index and Live Chart – CoinDesk”>(BTC) miners are cashing in.

Hut 8 shares (HUT), a Miami-based bitcoin miner, outperformed their peers on Monday following a $150m investment by Coatue Management for the construction of artificial intelligence infrastructure.

According to a announcement, the funding will come from convertible notes that have an annual interest rate of 8% and a conversion ratio of $16.395 for each share. Hut 8’s shares rose nearly 4% on Monday morning. BTC is being followed by most of its peers in a downward trend.

The investment gave a boost to other data centers related to bitcoin mining, which also serve AI and high performance computing (HPC), on Monday. Soluna Holdings’ (SLNH) stock soared by nearly 17%, while Applied Digital’s (APLD) was up about 10%.

AI and HPC companies are increasingly turning to bitcoin mining to meet their computing needs. AI and HPC firms are increasingly looking to the bitcoin mining industry for computing power. JPMorgan stated that large-scale data centres and AI firms’ demand for power could lead to a new era in mergers and acquisitions of bitcoin miners who have attractive power contracts.

has offered to purchase the entire company at a price of more than $1 billion. Core refused the takeover because it undervalued their company.

Coatue Management, an investor in CoreWeave is a sign of the interest shown in using the current infrastructure of bitcoin miners to power AI services.

Hut 8’s Monday press release reaffirmed the need for power.

It said that “many traditional data center operators fail to meet the surge in demand for AI computing capacity due to the power shortages, the long lead times for bringing new capacity online, as well as the extensive upgrades needed for existing data centres to support the latest high-density computation,” it stated. Hut 8 claims it can close that gap.

Sheldon Reback is the editor.