Hut 8 scrambled higher early Thursday on chatter that the bitcoin miner is partnering with Meta on a multibillion dollar artificial intelligence data center project. Elsewhere, Bitdeer Technologies (BTDR) filed on Wednesday to raise $1 billion in a new offering.
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Local news outlet WBRZ reported earlier this week that Hut 8 (HUT) planned to build a $12 billion AI data center in West Feliciana Parish, Louisiana. The new site is just off Hwy LA-964 and expected to be completed in multiple phases. Phase one will include the construction of two 450,000 square foot buildings, which local officials hope will be completed by the end of 2025. The first phase of the project will employ 1,500 to 2,000 construction workers and bring several hundred more jobs to West Feliciana Parish, Parish President Kenny Harvard told WBRZ.
The project is privately funded, according to WBRZ.
The news regarding Hut 8’s build out came just days after reports that Facebook and Instagram parent Meta (META) is establishing a new AI development center in north Louisiana. WBRZ reported that Meta’s $10 billion AI data center will result in 500 new, direct jobs, as well as 1,000 indirect jobs and 5,000 construction jobs during the build out. Utility Entergy (ETR) is also building out a $3.2 billion energy plant close to Meta’s new facility.
Neither Hut 8 nor Meta have officially announced a partnership for their respective projects. However, there was speculation on social media that the two companies are working together, CoinDesk reported. According to an excerpt from local planning documents, Hut 8 will lease the facility to a hyperscale tenant. Some speculate that Hut 8’s facility is part of Meta’s plans for further data center expansion in Louisiana.
Hut 8 Stock Spikes
Still, the thin potential connection to Meta was enough to send Hut 8 shares rallying 15% after the Thursday, before paring gains to 9%. HUT stock has spiked about 67% since the U.S. elections on Nov. 5, with bitcoin clearing $100,000 in early December. Shares have doubled in 2024 through Wednesday’s close.
Meta stock dipped a fraction early Thursday. Meta shares are trading near the top of a buy zone for an eight-week flat base. Shares broke out above the 602.95 buy point on Dec. 3.
Meta stock vaulted nearly 79% so far this year and is trading near record highs.
Elsewhere, Bitdeer stock surged 8% Thursday morning. The bitcoin miner on Wednesday filed a mixed shelf offering to raise up to $1 billion, according to SEC filings. Bitdeer said the purpose of the offering is to increase it capitalization and financial flexibility. The company plans to use the proceeds for general corporate purposes and other business opportunities. As a mixed shelf offering, Bitdeer may offer, issue and sell securities, debt and warrants from time to time, rather than specific intervals.
BTDR stock has rallied 170% since November’s U.S. presidential election.
Meanwhile, bitcoin traded around $101,000 Thursday morning. The world’s largest cryptocurrency is up 140% this year and hit a record high of $103,900 on Dec. 5.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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