TLDR
- Third Point LLC, run by billionaire Dan Loeb, invested in four Bitcoin miners now focused on AI infrastructure
- The fund raised its Hut 8 stake to $151.8 million and opened new positions in Riot Platforms, Core Scientific, and Applied Digital
- Third Point also holds $194.47 million in Jack Dorsey’s Block
- All four miners have signed major long-term AI data center deals worth billions
- The strategy reflects a shift from crypto mining to higher-margin AI computing revenue
Billionaire hedge fund manager Dan Loeb has made a calculated move into former Bitcoin miners that are now building AI infrastructure. His firm, Third Point LLC, disclosed the investments in its latest 13F filing with the SEC.
The biggest position is in Hut 8, where Third Point raised its stake by 51% to $151.8 million. The fund also opened smaller positions in Riot Platforms, Core Scientific, and Applied Digital.
Third Point also holds $194.47 million in Block, the fintech company run by Jack Dorsey.
Why Bitcoin Miners Are Moving to AI
Bitcoin mining was once highly profitable, but lower crypto prices, rising energy costs, and reduced block rewards have squeezed margins. As the AI industry grew fast, miners realized they already had the infrastructure to pivot.
Their large data centers and power capacity make them well-suited to provide computing power for AI companies. That business can offer more stable, higher-margin revenue than mining.
The numbers from these companies show how fast things have moved.
Hut 8 reported second-quarter revenue of $74.9 million, up 81% year-over-year. The company is building out its River Bend data center project in Texas.
Riot Platforms posted second-quarter revenue of $174.2 million, beating analyst estimates by 14.6%. The company recently signed a 20-year, $9.1 billion deal with AI company Anthropic.
Massive Long-Term Deals Back the Strategy
Core Scientific reported 109% revenue growth to $164.2 million in the second quarter. That was driven in part by a data center partnership with AMD potentially worth $14 billion in contracted revenue.
Applied Digital had a stronger quarter still. Its fiscal fourth-quarter revenue jumped 407% year-over-year to $258.7 million, beating estimates by 181.5%. The company signed a 15-year, $5.2 billion lease with a U.S. hyperscaler in June.
Hut 8 also signed a 15-year, $9.8 billion lease to build out its Texas campus in July.
These deals lock in long-term revenue for companies that used to depend entirely on Bitcoin prices.
Block, meanwhile, reported second-quarter revenue of $6.62 billion and earnings per share of $1.02, beating estimates on both counts. The company laid off more than 4,000 employees earlier this year as AI replaced those roles.
Third Point’s positions in the three smaller miners are each under $7 million. But together they represent a deliberate, diversified bet on the same trend. Rather than picking one winner, Loeb has spread exposure across several companies making the same transition from Bitcoin mining to AI infrastructure.
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