Hut 8 receives $150 million boost for AI data center expansion

Bitcoin miner Hut 8 revealed that it would person a $150 cardinal convertible enactment concern from Coatue Management, a technology-focused concern absorption firm.

Data halfway expansion

Hut 8 said the funds would accelerate the maturation of its information halfway portfolio. Data centers are customized facilities lodging large-scale crypto-mining operations. These facilities necessitate energy-intensive infrastructures besides susceptible of supporting artificial quality compute.

With generative AI’s accelerated maturation during the past year, AI firms are competing for these facilities arsenic the accepted information halfway operators look respective challenges, including powerfulness shortages, agelong pb times to bring caller capableness online, and extended upgrades to enactment the latest high-density computing.

However, Hut 8 believes it tin leverage its expertise successful processing and operating analyzable vigor infrastructure to conscionable this precocious request and presumption itself arsenic a person successful the AI infrastructure market.

Hut 8 operates 19 sites, including 10 Bitcoin mining, hosting, and managed services locations successful Alberta, Canada, New York, and Texas. Additionally, it has 5 high-performance computing information centers successful British Columbia and Ontario and 4 powerfulness procreation assets successful Ontario.

Hut 8 Mining CEO Asher Genoot expressed excitement astir the concern with Coatue, noting the firm’s extended expertise and concern way grounds successful the AI ecosystem.

He added:

“We judge this concern volition let america to unlock important opportunities and connectivity to the broader abstraction arsenic we participate this adjacent signifier of growth.”

Notably, this concern comes astatine a pivotal infinitesimal arsenic respective Bitcoin miners pivot towards AI owed to their declining revenues. Last month, Core Scientific secured a $3.5 cardinal declaration with AI startup CoreWeave.

Note details

The convertible enactment volition wage 8% involvement annually and person an archetypal word of 5 years. Hut 8 tin widen the word for up to 3 further one-year periods.

Further, the enactment volition beryllium a elder unsecured work of the company. Its archetypal conversion terms is acceptable astatine $16.395 per stock of communal stock, a 45% premium to the 10-day volume-weighted mean price. The transaction is expected to adjacent by July 11.

The station Hut 8 receives $150 cardinal boost for AI information halfway expansion appeared archetypal connected CryptoSlate.