The stock of %Bitcoin (CRYPTO: $BTC) miner %Hut8 (NASDAQ: $HUT) is up 12% on speculation that the company will be contracted to build a new data centre for MetaPlatforms (NASDAQ: $META).
Shares of the Canadian crypto miner were trading at just over $40 in pre-market trading as rumours swirl on social media that Hut 8 and Meta Platforms are entering a partnership.
Neither company has announced any deal to build a data centre and the rumours have not been confirmed.
However, there is widespread speculation that Hut 8 will help build Meta Platforms’
New $10 billion U.S. %ArtificialIntelligence (A.I.) data centre in Louisiana.
The new data centre will be the biggest ever for Meta Platforms and be used to train and operate the company’s A.I. models and applications.
There are similarities between Bitcoin miners and A.I. data centres in the required equipment, computing power, and energy needed to run them.
Some Bitcoin miners have been dedicating resources to A.I. computation to help diversify their revenue streams.
Hut 8 previously announced a $500 million at-the-market stock offering. The company said it mined 94 Bitcoin during November of this year, down 6% from the previous month.
The company currently holds 9,122 Bitcoin worth $921 million U.S. on its balance sheet.
Prior to today (Dec. 12), Hut 8 stock had risen 125% this year to trade at $37.82 per share in Toronto.
The price of Bitcoin is currently trading at $101,150 U.S., having risen 129% this year.