Billionaire Hedge Fund Manager Invests in Ex-Bitcoin Miners Shifting to AI
Third Point, the hedge fund founded by billionaire Daniel Seth Loeb, has increased its investments in former Bitcoin mining companies that are now pivoting toward artificial intelligence (AI). The firm's second-quarter 2026 SEC filing shows significant stakes in Hut 8, Riot Platforms, Core Scientific, and Applied Digital Corp. These firms have shifted their focus from Bitcoin to AI due to declining profitability in crypto mining caused by lower prices, higher energy costs, and reduced block rewards. In addition to these investments, Third Point also added a $194.47 million position in Block (formerly Square), founded by Jack Dorsey, which has heavily integrated AI into its operations. The shift is evident through major long-term contracts signed with hyperscalers like AMD and Anthropic, signaling the companies' commitment to leveraging their existing data center infrastructure for AI. Block's recent financial results showed strong performance in Q2 2026, beating revenue estimates and reporting a profit per share above expectations. This has reinforced investor confidence that integrating AI can be highly profitable.
Tickers: $AMD $APLD $CORZ $HUT $RIOT $XYZ
Topics: AI infrastructure Bitcoin data center leases hedge fund investments