Announces $150 Million Strategic Investment from Coatue to Partner in Building Next Generation AI Infrastructure Platform
Summary
We believe their differentiated energy strategy and track record of fast, cost-efficient development will continue to drive competitive advantage as they execute on these opportunities.Many traditional data center operators are failing to meet the surging demand for AI compute capacity due to power shortages, long lead times to bring new capacity online, and the extensive upgrades required for existing data centers to support the latest generation of high-density compute. Hut 8 believes it can leverage its proven ability to develop and operate complex energy infrastructure to address unmet demand and emerge as a leader in the AI infrastructure market.We are thrilled to be partnering with Coatue, given the firms deep expertise and long track record of investments in the AI ecosystem, said Asher Genoot, Chief Executive Officer of Hut 8. The initial conversion price of the Note is $16.395 per share of common stock, subject to certain anti-dilution adjustments (the Conversion Price), which is an approximately 45% premium to the 10-Day VWAP 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.This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.The Company has made available on its website a presentation with additional information concerning the transaction. Forward-looking information is often identified by the words may, would, could, should, will, intend, plan, anticipate, allow, believe, estimate, expect, predict, can, might, potential, predict, is designed to, likely, or similar expressions.Statements containing forward-looking information are not historical facts, but instead represent managements expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by the Company as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the satisfaction of conditions to the closing of the Transaction on the proposed terms or at all; the ability to obtain necessary stock exchange, regulatory, governmental or other approvals in the time assumed or at all; the ability to realize the anticipated benefits of the Transaction; the potential impact on mining activities; the potential impact of the announcement or consummation of the Transaction on relationships, including with regulatory bodies, employees, suppliers, customers, competitors and other key stakeholders; the Companys ability to compete in the highly-competitive AI infrastructure market; the ability of the Company to transition its expertise in the sourcing, development and operation of Bitcoin mining sites to the sourcing, development and operation of AI data centers; the Companys ability to execute on its pipeline of new sites; the impact of rapid technological development in the AI industry and its impacts to the infrastructure needs of AI marketplace participants; changes in market demand; and the other risks described under the Risk Factors section of the Companys Transition Report on Form 10-K, filed with the SEC on April 26, 2024, and available under the Companys EDGAR profile at www.sec.gov.