Bitcoin Miner Hat 8 Raises $150M Amid AI Boom

Tech-focused investment manager Coatu Management will make a $150 million investment in Bitcoin (BTC) miner Hat 8 Corp as investors continue to capitalize on the artificial intelligence (AI) boom.

On June 24, Hut 8 Corp announced a multi-million dollar investment in Coatue Management, owned by billionaire Philippe Lafont, through a convertible note.

Investing in power

According to the Bitcoin (BTC) miner, the note pays 8% per year with an initial period of five years. The Hut 8 has the option to extend the warranty for up to three one-year renewal periods. The investment will be a senior unsecured obligation of Coatue management.

Laffont sees Bitcoin mining as “well-positioned” to accelerate new computational capabilities and “capitalize” on any opportunities that come from it.

“We are committed to supporting the innovators who advance AI and believe that computing power is critical to the ecosystem's significant growth.”

A completed transaction is expected on or before July 11 this year. On June 21, Hut 8 filed its investment agreement with Coatue with the United States Securities and Exchange Commission.

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Hat 8 stands as one of the largest public miners based on computing power. Its current market capitalization is $1.1 billion.

AI x crypto mining

In the crypto industry, the Hut 8 was one of the first to get involved in the high-performance computing business, which is now being sought after to power generative AI models and applications.

Other cryptocurrency miners, including Core Scientific and TeraWulf, are involved in hosting data centers or deals with AI companies. Both of the aforementioned companies have seen a surge in their stock prices after inking AI-focused deals.

According to Coatue's Robert Yin, the broader market is beginning to appreciate the “scarcity of high-quality energy resources,” an asset Hut 8 has built a highly attractive and scalable “deep pipeline.”

Cointelegraph reached out to Hut 8 to find out more about the investment.

After the Bitcoin halving in April, many mining companies are looking for ways to make themselves more competitive amid challenges of profitability.

Around this time, Hat 8 said it was looking to expand its mining operations and various sources of revenue.

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