Cryptocurrencies

Technology-focused investment management firm, Coatue Management,

Technology-focused investment management firm Coatue Management will invest $150 million in Bitcoin mining company Hut 8 Corp, as investors continue to capitalize on the artificial intelligence (AI) boom.

On June 24, Hut 8 Corp unveiled a multimillion-dollar investment from Coatue Management, owned by billionaire Philippe Laffont, which will be made in the form of convertible bonds.

Invest in power

According to the Bitcoin miner, the note will earn 8% each year with an initial duration of five years. Hut 8 has the option to extend the rating for up to three one-year extension periods. The investment will constitute a senior unsecured commitment of Coatue Management.

Laffont said they see the Bitcoin mining company as “well-positioned” to accelerate new computing capabilities and “take advantage” of any opportunities that come with it.

“We are committed to supporting innovators working to advance AI and believe that computing power is essential to unleashing meaningful growth across the ecosystem. »

The transaction is expected to be completed no later than July 11 of this year. The transaction is expected to be completed no later than July 11 of this year. On June 21, Hut 8 filed its investment agreement with Coatue with the United States Securities and Exchange Commission (SEC).

about: Bitcoin miners up 10% after Trump pledges support for US miners

Hut 8 is one of the largest public miners in terms of available computing power. Its current market value is $1.1 billion.

Artificial intelligence x cryptocurrency mining

In the cryptocurrency sector, Hut 8 was one of the first companies to get involved in high-performance computing work, now sought after to power generative AI models and applications.

Other cryptocurrency miners, including Core Scientific and Terawolf, have also been involved in hosting data centers or striking deals with AI companies. Both companies mentioned saw their stock prices rise slightly after completing AI-focused deals.

The broader market is starting to appreciate the “scarcity of high-quality energy assets”, with Hut 8 building a “deep pipeline” of highly attractive and scalable assets, said Robert Yin, partner at Kuato.

Cointelegraph has reached out to Hut 8 for additional information on the investment.

After the price of Bitcoin (BTC) halved in April, many mining companies looked for ways to become more competitive in the face of profitability concerns.

At that time, Hut 8 said it was looking to expand its self-mining operations and diversify its revenue streams.

review: SEC drops Ethereum probe but still demands billions in fines from Ripple: Hodler’s Digest, June 16-22

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