Dan Loeb takes $40.8M position in Hut 8 as Bitcoin miner pivots to AI data centers
Dan Loeb, the billionaire behind hedge fund Third Point, has placed a sizable bet on a company that used to be known primarily for mining Bitcoin. His fund acquired roughly 869,563 shares of Hut 8 Corp. during Q1 2026, a position worth approximately $40.8M.
From mining rigs to GPU racks
Hut 8 has been steadily repositioning itself away from pure Bitcoin mining toward high-performance computing and AI data center operations. The company reported Q1 2026 revenue of $71M, a massive jump from $21.8M in the same quarter the prior year. Most of that revenue now comes from compute-related activities rather than cryptocurrency mining.
Hut 8 has secured approximately $9.8B in incremental base-term contract value through long-term agreements. Hut 8 shares have climbed 131.73% year-to-date, and over the trailing 52 weeks, they’ve surged nearly 567%.
Why Loeb is dismissing bubble talk
Loeb has publicly dismissed concerns about an AI bubble, arguing that the major tech companies driving AI demand are posting strong earnings and healthy cash flows. His point is that the customers lining up to rent data center capacity aren’t speculative startups — they’re among the most profitable companies on the planet.
What this means for investors
The revenue trajectory tells a compelling story. Going from $21.8M to $71M in quarterly revenue, with the bulk now coming from compute rather than mining, suggests Hut 8 is approaching the point where its AI business dwarfs its crypto operations in financial terms. If that trend continues, the company’s valuation framework could shift from crypto mining comparables to data center and cloud infrastructure multiples.
The $9.8B in long-term contract value is the number that probably matters most. Bitcoin mining revenue fluctuates with hash rate, difficulty adjustments, and coin price. A long-term hosting contract with a hyperscaler does not. That said, a nearly 567% gain over 52 weeks means a lot of future growth is already priced in.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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