The hedge fund and private equity firm run by billionaire Phillippe Laffont has agreed to purchase a convertible note from the Miami-based Bitcoin miner, which has a significant Canadian presence, to develop infrastructure to power the AI boom. (The Logic)
Talking point: Bitcoin mining and AI data centres use practically identical equipment. In April, the rewards Bitcoin miners earn for processing a block of transactions cut in half, putting pressure on the sector. Meanwhile, demand for AI processing capacity is soaring. In response, many Bitcoin miners are pivoting to AI. Hut 8 already has an AI business line as part of a revenue diversification strategy. Other Bitcoin mining companies have recently received takeover bids amid growing investor interest thanks to the AI boom. Examples include Core Scientific, which rejected a US$1-billion offer from cloud computing firm CoreWeave earlier this month, and Toronto-based Bitfarms, whose shareholder Riot is plotting a board shakeup after Bitfarms rejected a US$950-million hostile takeover bid.
