Loeb's Third Point Bets on Bitcoin Miners' AI Infrastructure Pivot
Billionaire investor Dan Loeb's hedge fund Third Point has built a four-stock basket focused on bitcoin miners pivoting toward AI infrastructure. This shift reflects a broader trend in the industry, as power-intensive data centers are being repurposed to provide computing capacity for AI companies.
The four stocks in this basket are Hut 8 Corp., Riot Platforms Inc., Core Scientific Inc., and Applied Digital Corp. Third Point increased its stake in Hut 8 by 51%, bringing the value of its holding to $151.8 million. Hut 8 reported second-quarter revenue of $74.9 million, up 81% year-over-year, though it missed estimates.
The other three positions are smaller: Riot Platforms, Core Scientific, and Applied Digital. Each has reported impressive growth numbers. Riot Platforms beat analyst estimates by 14.6%, Core Scientific's revenue grew 109% to $164.2 million, and Applied Digital exceeded expectations by a massive 181.5%. These investments suggest a deliberate bet on the shift from bitcoin mining to AI data centers.