Hut 8 Shares Surge Amid Speculation of Meta Partnership

According to CoinDesk, shares of bitcoin miner Hut 8 experienced a significant increase of nearly 12% in pre-market trading, fueled by social media speculation about a potential collaboration with Meta Platforms, the owner of Facebook. The shares reached just under $30 by 10:00 UTC. Additionally, the CoinShares Valkyrie Bitcoin Miners ETF, which provides broad exposure to the BTC mining sector, saw a rise of about 3%. Despite the market buzz, neither Hut 8, based in Miami, Florida, nor Meta, headquartered in Menlo Park, California, has officially announced any partnership. Hut 8 is currently constructing a data center in West Feliciana Parish, Louisiana, with an initial investment of $12 billion, as reported by local media. Meanwhile, Meta has plans to build a $10 billion AI data center in Richland Parish, Louisiana, according to Reuters. The similarities between bitcoin mining operations and AI data centers lie in the equipment, computing power, and energy requirements. Some bitcoin miners have started allocating resources to AI computation as a strategy to diversify their revenue streams. Hut 8 has previously announced a $500 million at-the-market offering and a $250 million stock-repurchase program. In November, the company mined 94 BTC, marking a 6% decrease from the previous month. Hut 8 holds 9,122 BTC, valued at approximately $921 million, making it the seventh-largest bitcoin holder among publicly traded companies. Neither Hut 8 nor Meta has responded to CoinDesk's request for comment regarding the speculation of their potential partnership.