Dan Loeb bets on four Bitcoin miners turned AI plays, lifts Hut 8 stake to $152M
What's the deal? Dan Loeb's hedge fund Third PointDealroom has a profile for this one. Try Dealroom → has invested in four former Bitcoin miners now pivoting to AI infrastructure, according to its latest 13F filing with the Securities and Exchange Commission. The firm raised its Hut 8Dealroom has a profile for this one. Try Dealroom → stake by 51% to $151.8 million and opened new positions in Riot Platforms, Core Scientific, and Applied Digital.
Why now? Bitcoin mining margins have narrowed under lower crypto prices, rising energy costs, and reduced block rewards. As AI demand surged, miners realised their data centres and power capacity could supply computing for AI firms — a steadier, higher-margin business than mining.
What changes? The four companies have signed long-term deals that lock in revenue once tied entirely to Bitcoin prices. Riot signed a 20-year, $9.1 billion agreement with AnthropicDealroom has a profile for this one. Try Dealroom →, while Core Scientific's AMDDealroom has a profile for this one. Try Dealroom → partnership could be worth $14 billion in contracted revenue.
Hut 8 signed a 15-year, $9.8 billion lease to build out its Texas campus in July. Applied Digital signed a 15-year, $5.2 billion lease with a US hyperscaler in June.
By the numbers: The revenue growth is steep. Hut 8 reported second-quarter revenue of $74.9 million, up 81% year-over-year. Riot posted $174.2 million, beating estimates by 14.6%, and Core Scientific grew 109% to $164.2 million.
Applied Digital's fiscal fourth-quarter revenue jumped 407% year-over-year to $258.7 million, beating estimates by 181.5%.
The spread: Third Point's positions in Riot, Core Scientific, and Applied Digital are each under $7 million. Rather than picking one winner, Loeb has spread exposure across several companies making the same shift from mining to AI.
Third Point also holds $194.47 million in Block, Jack Dorsey's fintech company, which reported second-quarter revenue of $6.62 billion and earnings per share of $1.02, beating estimates. Block cut more than 4,000 jobs earlier this year as AI replaced those roles.
The signal: Loeb's bet tracks a broader repositioning: infrastructure built for crypto is being repurposed for AI, and investors are backing the transition. For miners once at the mercy of Bitcoin's swings, multibillion-dollar, multi-decade contracts offer something the crypto cycle never did — predictable revenue.
Read more: coincentral.com
Image credit: U.S. Army Combat Capabilities Development Command
