Hut 8 Shares Surge on Meta Partnership Speculation

Hut 8 Sees Surge in Shares Amid Speculation of Meta Collaboration

In recent trading activity, shares of bitcoin miner Hut 8 surged nearly 12% in pre-market trading, largely attributed to swirl of speculation on social media regarding a potential partnership with Meta Platforms, the parent company of Facebook. By 10:00 UTC, shares had reached just under $30.

The Buzz in the Market

In addition to Hut 8's stock performance, the CoinShares Valkyrie Bitcoin Miners ETF, which offers extensive exposure to the bitcoin mining sector, experienced a notable increase of approximately 3%. However, it is important to note that as of now, neither Hut 8, based in Miami, Florida, nor Meta, headquartered in Menlo Park, California, have made any official announcement confirming a partnership.

Projects in Louisiana

Currently, Hut 8 is in the process of constructing a massive data center in West Feliciana Parish, Louisiana, with an initial investment of $12 billion, as highlighted by local media sources. Meanwhile, Meta is also advancing plans to establish a $10 billion AI data center in nearby Richland Parish, Louisiana, according to reports from Reuters.

Common Ground Between Bitcoin Mining and AI Data Centers

Hut 8 and Meta share similarities in their operations, particularly in the realm of equipment, computing power, and energy requirements. There has been a growing trend among bitcoin miners to allocate resources for AI computation as a way to diversify revenue streams. Hut 8 has previously declared offering $500 million at-the-market and initiated a $250 million stock-repurchase program.

Hut 8's Mining Performance

In November, Hut 8 reported mining a total of 94 BTC, reflecting a 6% decrease from the previous month. The company currently retains 9,122 BTC, which is valued at approximately $921 million, positioning it as the seventh-largest bitcoin holder among publicly traded companies.

No Comments on Collaboration Speculation

Despite the buzz surrounding the potential partnership, neither Hut 8 nor Meta has responded to CoinDesk's request for comments regarding the speculated collaboration.

The Future of Hut 8 and Meta

As the market continues to evolve, both Hut 8 and Meta hold positions that may significantly influence the sectors of bitcoin mining and AI technology. Investors and stakeholders will be closely watching for any further announcements or developments regarding their strategic initiatives in Louisiana and potential collaborations.