07:58 AM EDT, 06/24/2024 (MT Newswires) -- Bitcoin miner Hut 8 ( HUT ) said Monday that it secured a US$150 million investment from a fund managed by Coatue Management L.L.C. through a convertible note.

According to a statement, the note will have a principal amount of $150 million and bear an interest rate of 8.00% per year, with an initial five-year term, subject to extension for up to three one-year extension periods at the option of the company.

Hut 8 ( HUT ) said Coatue will have the option to convert the note into shares of the company's common stock, subject to certain limitations. The initial conversion price of the Note is $16.395 per share of common stock, subject to certain anti-dilution adjustments, which is an approximately 45% premium to the 10-Day VWAP through June 20, 2024, the day prior to the signing of the Note Purchase Agreement.

The closing of the issuance of the Note is expected to be completed on or prior to July 11, 2024, subject to customary closing conditions.

"We believe this partnership will allow us to unlock significant opportunities and connectivity to the broader space as we enter this next phase of growth," Hut 8 ( HUT ) CEO Asher Genoot said.

The company said it believes it can leverage its ability to develop and operate complex energy infrastructure to address unmet demand for AI compute capacity and emerge as a leader in the AI infrastructure market.

"We believe that Hut 8 ( HUT ) is well-positioned to accelerate new compute capacity and can capitalize on the opportunity it will bring," said Philippe Laffont, founder and portfolio manager of Coatue.

Hut 8's ( HUT ) share price was down near 4% at last look to under $12 in US pre-market trading, having been down more than 4%. This comes after its stock dropped more than 5% in both the U.S. and Canada last Friday.