Loeb Bets Big on Former Bitcoin Miners as They Pivot to AI

Third Point, Dan Loeb's hedge fund, has invested in four former Bitcoin miners now pivoting to AI infrastructure. The firm raised its Hut 8 stake by 51% to $151.8 million and opened new positions in Riot Platforms, Core Scientific, and Applied Digital.

The companies have signed long-term deals that lock in revenue once tied entirely to Bitcoin prices. For example, Riot signed a 20-year, $9.1 billion agreement with Anthropic, while Core Scientific's AMD 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. This shift from mining to AI has led to significant revenue growth: Hut 8 reported second-quarter revenue of $74.9 million, up 81% year-over-year.

Rather than picking one winner, Loeb has spread exposure across several companies making the same shift. 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.