Core

Bitcoin

April

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Coatue Management worth about $70 billion bets on AI for Bitcoin and crypto mining.</li>
 <li>The firm invested $150 million in Hut 8 via a convertible note.</li>
</ul>
According to the latest reports coming from Bloomberg, Coatue Management is the latest firm to bet on AI in the crypto mining industry.
The tech-oriented hedge fund and private equity firm makes a $150 million investment in Hut 8 Corp via a convertible note, according to the latest reports revealed by the Bitcoin miner based in Miami.
Hut 8 is one of the largest public miners by computing power and it was also among the earliest players in the industry to get involved in high-performance computing businesses that can power generative AI applications.
Hut 8 has 19 sites including 10 Bitcoin mining, hosting, and managed services sites in Alberta, Canada, New York, and Texas.
The firm also has five high-performance computing data centers in British Columbia and Ontario, along with four power generation assets in Ontario.
Coatue has invested in more AI firms including OpenAI and CoreWeave.
The firm’s convertible note will pay 8% interest manually, with an initial term of five years, subject to extension for up to three one-year extension periods at the option of Hut 8, <a href="https://www.bloomberg.com/news/articles/2024-06-24/laffont-s-coatue-invests-in-bitcoin-miner-hut-8-as-sector-joins-ai-race?utm_medium=social&amp;utm_campaign=socialflow-organic&amp;utm_content=crypto&amp;utm_source=twitter&amp;embedded-checkout=true" rel="noopener noreferrer nofollow" target="_blank">Bloomberg</a> reports.
<h2 id="bitcoin-and-crypto-miners-try-to-boost-their-revenue">Bitcoin and crypto miners try to boost their revenue</h2>
The move comes amidst huge efforts from Bitcoin and crypto miners to boost their revenue. They are trying to capitalize on their available access to large amounts of power that can meet the soaring demand from AI firms.
Bloomberg also reported that Core Scientific’s shares jumped after the firm secured $3.5 billion in revenue that would be generated from its hosting contracts with AI upstart CoreWeave over the next 12 years.
Bitcoin miners are using power-hungry specialized computers to validate encrypted transactions on the blockchain to earn rewards.
The Bitcoin halving which took place back in April slashed miner revenue from 6.25 to 3.125 BTC promoting BTC miners to look for more sources of income.
The crypto market has been witnessing a prolonged miner capitulation event which has been recently addressed by Willy Woo. The event was<a href="https://crypto.ro/en/news/bitcoin-miner-capitulation-is-expedited-by-mt-goxs-9-32b-refund-announcement/" rel="noopener noreferrer nofollow"> expedited</a> by the Mt. Gox refund announcement.

$70B Worth Coatue Invests $150M In Hut 8, Beting On AI In Bitcoin And Crypto Mining

Съдържание

crypto.ro global

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