Bitcoin mining firm Hut 8 said it will receive $150 million through convertible notes from Coatue Management, with plans to use the funding to build an artificial intelligence infrastructure platform.

The investment will be used to address a critical gap in the market: the surging demand for AI computing capacity. Many traditional data centre operators are increasingly unable to meet this demand due to a variety of challenges, including power shortages.

There are also lengthy lead times to bring new capacity online, and the need for extensive upgrades to support the latest high-density computing technologies.