Dead or Alive's 1984 single was recorded in a 36-hour session, and Waterman said that he took the drug to help him stay awake in the studio.
The Daily Mail reported Waterman as saying: "It's the only time I have ever done cocaine in my life. Well, you know, how do you stay up for 36 hours?"
'You Spin Me Round (Like a Record)' was released in November 1984 and made it to number one in the UK 17 weeks after its release, in March 1985.
The single was Stock Aitken Waterman's first chart-topping record.
On December 21 a host of musicians who worked with Stock Aitken Waterman's PWL enterprise came together for the Hit Factory Live show at London's O2 arena.
Kylie Minogue and Jason Donovan reunited at the show to sing their Stock Aitken Waterman-produced single 'Especially for You' for the first time in 23 years.
Watch Kylie Minogue and Jason Donovan sing 'Especially for You' at Hit Factory Live below:
Photo gallery - The Hit Factory Live Christmas Cracker:
Copyright: Ian West/PA Wire/Press Association Images