Hut 8 a Bitcoin mining company obtains 150m financing to construct an innovative platform for AI infrastructure
Hut 8, a prominent Bitcoin mining company based in Miami, has announced a successful funding round of $150 million to strengthen its data center capabilities in the field of artificial intelligence (AI). The funding, which comes in the form of convertible notes with an 8% annual interest rate, aims to support Hut 8’s expansion into AI infrastructure and establish itself as a leader in the industry. While the exact location of Hut 8’s new platform remains undisclosed, the funding is expected to enable the company to meet the growing demand for AI infrastructure and solidify its position in the market. In addition to its operations in the United States, Hut 8 also operates multiple cryptocurrency mining sites in Canada, although it has recently reduced its presence there due to rising energy costs.
Hut 8 CEO Asher Genoot expressed his excitement about the funding, stating that it will unlock significant opportunities and allow the company to connect with the broader space as it enters its next phase of growth. Genoot also expressed enthusiasm about partnering with Coatue, citing the firm’s extensive expertise and successful track record of investments in the AI ecosystem.
The convertible notes issued as part of the funding round will have an initial term of five years, with options for three one-year extensions, providing flexibility in repayment terms. Coatue, the investment manager behind this funding, has previously invested in various AI companies, including OpenAI and CoreWeave.
In previous news, Hut 8 reported a revenue of $60.6 million for the six months ending on December 31, 2023. The company’s earnings report also highlighted a 32% increase in revenue and a significant rise in net income to $6.2 million compared to the previous period’s net loss.
Marathon Digital, another Bitcoin mining company, has also recently entered into an agreement with Hut 8, paying them $13.5 million to operate two Bitcoin mining sites.
