Loeb Bets Big on Former Bitcoin Miners Turning to AI Infrastructure

Billionaire hedge fund manager Dan Loeb has made significant investments in companies that were once focused on Bitcoin mining but are now shifting to AI infrastructure, according to a recent 13F filing. Third Point LLC, Loeb's firm, disclosed positions in Hut 8, Riot Platforms, Core Scientific, and Applied Digital.

The largest position is in Hut 8, where Loeb's firm raised its stake by 51% to $151.8 million. The fund also opened smaller positions in the other three companies, with each valued at under $7 million. This bet on the trend of former Bitcoin miners pivoting to AI infrastructure represents a deliberate and diversified investment strategy.

The companies involved have signed major long-term deals worth billions, including a 20-year, $9.1 billion contract between Riot Platforms and Anthropic, and a 15-year, $5.2 billion lease with a U.S. hyperscaler by Applied Digital. These agreements lock in high-margin revenue for the companies, providing a stable source of income.

Loeb's firm also holds a significant stake in Block, the fintech company run by Jack Dorsey, valued at $194.47 million. This investment underscores Loeb's confidence in the potential of these former Bitcoin miners to adapt and thrive in the rapidly evolving AI landscape.