-
Coatue
Management
is
investing
$150
million
in
crypto
miner
Hut
8
to
build
AI-related
infrastructures -
The
deal
benefited
HUT’s
shares
as
well
as
other
bitcoin
mining-related
data-center
stocks
such
as
SHLN,
APLD. -
Coatue
is
also
behind
CoreWeave,
a
cloud-computing
firm
that
is
looking
to
buy
Hut
8
rival
Core
Scientific.
-
15:03
Big
Tech
Comes
to
Small
Town:
A
Bitcoin
Mining
Story
in
Spur -
00:39
What’s
the
Biggest
Misconception
People
Have
About
Bitcoin
Mining? -
01:47
What
You
Need
to
Know
About
the
Bitcoin
Halving -
04:20
Bitcoin
Miner
Bitfarms
Warns
of
Default
The
thirst
for
power
by
Artificial
intelligence
(AI)
firms
is
unrelenting,
and
bitcoin
(BTC)
miners
are
cashing
in.
Bitcoin
miner
Hut
8
(HUT)
shares
outperformed
most
peers
on
Monday
after
the
Miami-based
company
received
a
$150
million
investment
from
Coatue
Management
to
build
artificial
intelligence
(AI)
infrastructure.
The
funding
will
be
through
convertible
notes
with
an
8%
annual
interest
rate
and
a
conversion
rate
of
$16.395
per
share,
according
to
a
statement.
Hut
8
shares
rose
almost
4%
in
Monday
morning
trading.
Most
of
the
company’s
peers
are
following
BTC
lower.
The
investment
provided
a
boost
for
other
bitcoin
mining-related
data
centers
that
also
service
AI
and
high-performance
computing
(HPC)
on
Monday.
Soluna
Holdings
(SLNH)
surged
nearly
17%
and
Applied
Digital
(APLD)
added
about
10%.
AI
and
HPC
firms
are
increasingly
looking
to
the
bitcoin
mining
industry
to
secure
their
need
for
computing
power.
The
miners
often
already
have
the
computing
capacity
and
the
deals
with
power
suppliers
that
AI
and
HPC
hanker
after.
In
fact,
JPMorgan
said
that
the
demand
for
power
by
large-scale
data
centers
and
AI
firms
could
start
a
new
era
of
mergers
and
acquisitions
for
bitcoin
miners
with
attractive
power
contracts.
Most
recently,
cloud
computing
provider
CoreWeave
signed
a
200
megawatt
(MW)
deal
with
miner
Core
Scientific
(CORZ)
for
AI-related
services
and
offered
to
buy
the
whole
company
for
more
than
$1
billion.
Core
rejected
the
takeover,
saying
it
undervalued
the
company.
Interestingly,
Coatue
Management
is
one
of
the
investors
in
CoreWeave,
underlining
the
level
of
interest
in
utilizing
bitcoin
miners’
current
infrastructure
to
power
AI-related
services.
Hut
8
reaffirmed
this
need
for
power
in
Monday’s
press
release.
“Many
traditional
data
center
operators
are
failing
to
meet
the
surging
demand
for
AI
compute
capacity
due
to
power
shortages,
long
lead
times
to
bring
new
capacity
online,
and
the
extensive
upgrades
required
for
existing
data
centers
to
support
the
latest
generation
of
high-density
compute,”
it
said.
That’s
a
gap
Hut
8
says
it
can
help
narrow.