Hut 8, a digital asset mining company headquartered in Toronto, Canada, announced that it has received a strategic investment of US$150 million from Coatue and will cooperate to build a next-generation AI artificial intelligence infrastructure platform.
(Hut 8 is listed on Nasdaq and holds 9,366 Bitcoins accounting for 80% of its market value)
Hut 8 will accelerate the development of AI infrastructure
Hut 8 has two digital asset mining facilities and five high-performance computing data centers, supporting the traditional data center industry through cloud, hosting and hosting services, while also providing services for emerging next-generation technologies, including AI artificial intelligence , machine learning, visual effects rendering and Bitcoin mining.
Coatue is an American technology-focused investment management company founded in 1999. Its investment targets include OpenSea, Dapper Labs, ByteDance and Ant Financial, among others.
Coatue founder Philippe Laffont said:
We are committed to supporting innovators advancing the development of artificial intelligence and believe that computing power is critical to achieving significant growth throughout the ecosystem. We believe Hut 8 is well-positioned to accelerate new computing capabilities and capitalize on the opportunities it will bring.
Many traditional data center operators are unable to meet the surge in demand for AI computing capacity due to power shortages, long lead times for new capacity, and the extensive upgrades required to support the latest generation of high-density computing in existing data centers. Hut 8 believes it can leverage its proven capabilities in developing and operating complex energy infrastructure to address unmet needs and become a leader in the AI infrastructure market.
Coatue invests in Hut 8 with $150 million convertible notes
Coatue is partnering with Hut 8 as a strategic investment and has agreed to purchase $150 million in principal amount of convertible notes bearing an annual interest rate of 8%. The notes have an initial term of five years, with Hut 8 having an option to extend the term by one year, with a total of three extension opportunities. Interest on the note will be payable in cash or in kind. The notes will become senior unsecured obligations of the Company and are guaranteed by Hut 8 Mining Corp., a direct wholly-owned subsidiary of the Company.
Coatue will then have an option to convert the notes into common stock of the company at an initial conversion price of $16.395 per common share (a premium of approximately 45%).
This article Hut 8 received US$150 million in investment to accelerate the construction of AI infrastructure platform first appeared on Chain News ABMedia.
