Hut 8, a bitcoin miner, disclosed that Coatue Management. An investment management company with a focus on technology, would invest $150 million in convertible notes.
Hut 8 with $150 Million Investment
According to Hut 8, the money will hasten the expansion of its portfolio of data centres.
Data Centres’ Portfolio
Large-scale cryptocurrency mining activities are housed in special facilities called data centres. These facilities need very energy-efficient infrastructures that can handle computational artificial intelligence.
Since generative AI has grown so quickly in the last year. Traditional data centre operators are in competition with AI companies for these facilities.
Due to a number of issues such as power shortages, lengthy lead times for bringing new capacity online, and costly upgrades needed to support the newest high-density computing.
But Hut 8 thinks it can meet this strong demand and establish itself. As a market leader in AI infrastructure by utilising its experience in creating and managing sophisticated energy infrastructure.
Ten Bitcoin mining, hosting, and managed services locations in Alberta, Canada, New York, and Texas are among the 19 sites that Hut 8 runs.
It also owns four power generation assets in Ontario and five high-performance computing data centres in British Columbia.
CEO of Hut 8 Mining
Asher Genoot, CEO of Hut 8 Mining, expressed enthusiasm about the collaboration with Coatue and cited the company’s strong track record of investment in the AI ecosystem.
He added:
“We believe this partnership will allow us to unlock significant opportunities and connectivity to the broader space as we enter this next phase of growth.”
Shifting Of Bitcoin miners
Particularly, the timing of this investment is crucial. Because a number of Bitcoin miners are shifting to artificial intelligence as a result of their diminishing earnings. AI startup CoreWeave awarded a $3.5 billion deal to Core Scientific last month.
To read our blog on “Venezuela plans to close down crypto mining farms,” click here
