Loeb's Third Point Bets Big on Bitcoin Miners Turned AI Giants

Third Point LLC, led by billionaire Dan Loeb, has made strategic investments in four former cryptocurrency mining companies that are now building AI infrastructure. The hedge fund has increased its holdings in Hut 8 to $151.8 million and established new stakes in Riot Platforms, Core Scientific, and Applied Digital.

The four companies have secured long-term contracts for AI data center services worth billions of dollars, providing a more predictable revenue stream with higher profit margins than cryptocurrency mining.

Hut 8 generated $74.9 million in second-quarter revenue, an 81% year-over-year increase, while Riot Platforms delivered $174.2 million in revenue, surpassing Wall Street projections by 14.6%. Core Scientific achieved a 109% revenue expansion to $164.2 million, and Applied Digital posted a 407% year-over-year increase in fiscal fourth-quarter revenue.