Dan Loeb's Third Point LLC disclosed positions in four former Bitcoin miners now building AI infrastructure, led by a 51 percent increase in its Hut 8 stake to $151.8 million. The fund also opened new positions in Riot Platforms, Core Scientific, and Applied Digital, betting on the sector's pivot from volatile crypto mining to contracted AI data center services.
Third Point LLC disclosed positions in four Bitcoin miners pivoting to AI infrastructure, increasing its Hut 8 stake 51 percent to $151.8 million.
The fund's latest 13F filing, submitted to the Securities and Exchange Commission, shows new stakes in Riot Platforms, Core Scientific, and Applied Digital, alongside a $194.47 million position in Block, Jack Dorsey's fintech company.
Hut 8 generated $74.9 million in second-quarter revenue, up 81 percent year over year, while developing its River Bend data center in Texas. Riot Platforms delivered $174.2 million in second-quarter revenue, beating estimates by 14.6 percent, and signed a 20-year, $9.1 billion agreement with AI firm Anthropic. Core Scientific posted 109 percent revenue growth to $164.2 million, supported by an AMD partnership potentially worth $14 billion in contracted revenue. Applied Digital's fiscal fourth-quarter revenue jumped 407 percent to $258.7 million, exceeding expectations by 181.5 percent.
These long-term contracts provide revenue certainty for businesses that previously depended on volatile Bitcoin pricing. Hut 8 signed a 15-year, $9.8 billion lease in July to expand its Texas operations, while Applied Digital secured a 15-year, $5.2 billion lease with a major U.S. hyperscaler in June.
The investment thesis centers on the transition from crypto mining to AI computing services. Bitcoin miners own data center facilities and power infrastructure that translate directly to AI computational needs, offering more predictable revenue streams with higher margins. The AI boom has created heavy demand for power, land, cooling, and high-density facilities, making these former miners natural candidates for compute pivots. Mining facilities are not automatically AI data centers, however — AI workloads require different hardware, customer relationships, reliability standards, and capital spending. Not every miner will successfully make that transition.
The move comes as the Bitcoin mining sector faces declining profitability from falling cryptocurrency valuations, rising electricity costs, and diminishing mining rewards. The explosive growth of artificial intelligence has presented these companies with an alternative path forward, and long-term AI hosting contracts offer a potential second business line that is less directly tied to Bitcoin price.
Third Point's stakes in the three smaller mining companies each total less than $7 million, but collectively they represent a diversified approach to the sector's transformation. Rather than concentrating risk on a single company, Loeb distributed exposure across multiple firms executing the same strategy. The fund's $7 million position in Riot, $1.4 million in Core Scientific, and less than $1 million in Applied Digital are small individually but represent a deliberate basket approach.
Block separately reported second-quarter revenue of $6.62 billion with earnings per share of $1.02, exceeding forecasts in both categories. The company reduced its workforce by more than 4,000 positions this year, attributing the cuts to AI automation.
The 13F disclosure shows institutional capital treating Bitcoin miner equities as infrastructure assets rather than direct BTC proxies. Investors will watch upcoming quarterly filings and contract announcements to gauge whether the AI pivot delivers sustained revenue growth across the sector.
This article is for informational purposes only and does not constitute investment advice.
