The tech-focused investment manager Coatue Management will make a $150 million investment into the Bitcoin miner Hut 8 Corp. as investors continue to capitalize on the artificial intelligence (AI) boom.
On June 24, Hut 8 Corp. revealed the multimillion-dollar investment from Coatue Management, owned by billionaire Philippe Laffont, which will take place through a convertible note.
Investing in power
According to the Bitcoin miner, the note will pay out 8% each year with a starting term of five years. Hut 8 has the option to extend the note for up to three one-year extension periods. The investment will be a senior unsecured obligation of Coatue Management.
Laffont said they see the Bitcoin miner as “well-positioned” to accelerate new compute capacity and “capitalize” on any opportunities that come from it.
“We are committed to supporting innovators advancing AI and believe that compute capacity is crucial to unlocking significant growth across the ecosystem.”
The completed transaction is anticipated on or before July 11 of this year. The completed transaction is anticipated on or before July 11 of this year. On June 21, Hut 8 filed the investment agreement with Coatue with the United States Securities and Exchange Commission (SEC).
