Hut 8 secures $150M funding to build advanced AI infrastructure

Hut 8 ( NASDAQ: HUT ) shares dipped in early trading on Monday after the bitcoin miner secured a $150M strategic investment from investment manager Coatue. The energy infrastructure operator entered a definitive agreement with a fund managed by Coatue Management, pursuant to which Coatue has agreed to invest $150M through a convertible note. The funding will enable Hut 8 ( HUT ) to build a next-generation AI infrastructure platform and accelerate growth in its data center portfolio. Hut 8 CEO Asher Genoot said, “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.” The note will bear interest at 8.00% per year (compounded quarterly) and have an initial term of five years, subject to extension for up to three one-year extension periods at the option of the company. Interest on the note will be payable in cash or in-kind, at the company’s option. Coatue will have the option to convert the note into shares of Hut 8’s ( HUT ) common stock at an initial conversion price of $16.395 per share of common stock, subject to certain anti-dilution adjustments. Shares of Hut 8 ( HUT ) fell over 4% premarket on Monday. More on Hut 8 Mining Hut 8 (HUT) Q1 2024 Earnings Call Transcript HUT 8: A Cryptocurrency Stock With High Growth Potential Hut 8 Mining Corp. (HUT) Q4 2023 Earnings Call Transcript Hut 8 upgraded to Buy at Craig-Hallum on growth potential Hut 8 Corp reports earnings for first full quarter after merger

Source: Seeking Alpha