Loeb's Third Point Bets Big on Bitcoin Miners Turning to AI Infrastructure
Billionaire activist investor Dan Loeb's hedge fund, Third Point LLC, has quietly built a four-stock basket that gives it exposure to bitcoin miners pivoting toward AI infrastructure. This move reflects a broader shift in the industry, where bitcoin miners are converting their power-intensive data centers to provide computing capacity to AI companies.
The four stocks in the basket are Hut 8 Corp. (NASDAQ:HUT), Riot Platforms Inc. (NASDAQ:RIOT), Core Scientific Inc. (NASDAQ:CORZ), and Applied Digital Corp. (NASDAQ:APLD). Third Point increased its stake in Hut 8 by 51%, bringing the value of its holding to $151.8 million.
Riot Platforms reported second-quarter revenue of $174.2 million, beating analyst estimates by 14.6%. Core Scientific posted 109% revenue growth to $164.2 million in the second quarter, aided by an Advanced Micro Devices (NASDAQ:AMD) infrastructure partnership potentially worth $14 billion in long-term contracted revenue.
The fundamentals behind each pick are notable. Applied Digital’s fiscal fourth-quarter revenue jumped 407% year-over-year to $258.7 million on accelerating AI data-center demand, exceeding analyst expectations by a massive 181.5%.