Will accelerate the construction of AI infrastructure platform! Mining company Hut8 receives US$150 million investment from Coatue

Hut8 will accelerate the development of AI infrastructure

Hut8 has two digital asset mining facilities and five high-performance computing data centers, providing support for the traditional data center industry through cloud, hosting and hosting services, while also providing emerging services Next-generation technology provides services, including AI artificial intelligence, machine learning, visual effects rendering and Bitcoin mining.

Coatue is an American investment management company focusing on technology. It was established in 1999. Its investment targets include OpenSea, Dapper Labs, ByteDance, Ant Financial, etc.

Coatue founder Philippe Laffont said: We are committed to supporting innovators to advance the development of artificial intelligence and believe that computing power is critical to achieving significant growth in the entire ecosystem. We believe Hut8 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 to come online, and the extensive upgrades required to support the latest generation of high-density computing in existing data centers. Hut8 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 Hut8 with US$150 million in convertible notes

Coatue cooperates with Hut8 in a strategic investment manner and agrees to purchase US$150 million in principal of convertible notes with an annual interest rate of 8%. The notes have an initial term of five years, with Hut8 having the 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 the company's senior unsecured obligations and are guaranteed by Hut8 Mining Corp., the company's direct wholly-owned subsidiary.

Coatue will then have the option to convert the notes into common shares of the company, with the initial conversion price of the notes being $16.395 per common share (a premium of approximately 45%).

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