Hut 8 Corp. has recently announced a significant strategic investment from Coatue Management, L.L.C. totaling $150 million through a convertible note. The note will bear interest at a rate of 8.00% per year and have an initial term of five years, subject to extension for up to three one-year extension periods at the company's option. The note will be a senior unsecured obligation of the company and guaranteed by Hut 8 Mining Corp., a direct wholly-owned subsidiary of the company.
Coatue will have the option to convert the note into shares of the company’s common stock, subject to certain limitations. The initial conversion price of the note is $16.395 per share of common stock, which represents an approximately 45% premium to the 10-day volume-weighted average price through June 20, 2024, the day prior to the signing of the note purchase agreement.
The closing of the issuance of the note is expected to be completed on or prior to July 11, 2024, subject to customary closing conditions.
Hut 8 Corp. is a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest bitcoin miners. The company has a portfolio comprising nineteen sites: ten bitcoin mining, hosting, and managed services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario.
The partnership with Coatue Management, L.L.C. highlights the company's commitment to supporting innovators advancing AI and unlocking significant growth across the ecosystem. Hut 8 Corp. believes that this investment will allow them to accelerate new compute capacity and capitalize on the opportunities it will bring, reinforcing its position as a market leader in sourcing, developing, and operating energy infrastructure. As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $12.46. For more information, read the company's full 8-K submission here.
