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Bitcoin miner Hut 8 to receive $150 million to provide AI computing power

Bitcoin miner Hut 8 to receive $150 million to provide AI computing power
Hut 8 shifted its headquarters from Toronto to Miami following a merger last year.

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Hut 8 receives $150 million strategic investment from Coatue to accelerate growth

Hut 8, a Toronto-founded bitcoin mining and data center provider, has secured a $150 million investment from New York City-based investment management firm Coatue. The funding will come in the form of a convertible note, with an interest rate of eight percent per year and an initial term of five years. Coatue will have the option to convert the note into shares of Hut 8’s common stock at a price of $16.395 USD per share. The strategic funding is expected to accelerate the growth of Hut 8’s data-centre portfolio and support its expansion into artificial intelligence (AI) applications. The closing of the note’s issuance is expected to be completed by July 11, subject to closing conditions.

In related news, the federal government of Canada has committed $2.4 billion to boost the country’s AI footprint, while concerns about the environmental impact of data centers continue to grow. Hut 8, founded in 2017, became the first blockchain or cryptocurrency company to be listed on the Toronto Stock Exchange in October 2019. In February 2023, the company merged with Miami-based US Bitcoin Corp, officially becoming a Miami-based company while operating computing data centers in Vancouver, Kelowna, and the Greater Toronto Area.