Hut 8 Acquires 990 BTC for $100 Million, Reaches $1 Billion Reserve
Hut 8, a leading cryptocurrency mining company in North America, acquired 990 BTC on December 19. This purchase was made at an average price of $101,710 per coin, totaling approximately $100 million. Hut 8 now holds 10,096 BTC, valued at around $1 billion, with an average cost of $24,484 per Bitcoin.
Hut 8 Joins Top Corporate Bitcoin Holders
The acquisition positions Hut 8 among the top 10 corporate holders of Bitcoin. The company aims to explore further opportunities to expand its Bitcoin portfolio. Hut 8 generates most of its Bitcoin through mining rewards while also increasing reserves via direct market purchases.
Hut 8's Bitcoin reserve is viewed as crucial for long-term growth and shareholder value. CEO Asher Genoot emphasized that this reserve supports the firm’s financial strategy, aligning capital and operational initiatives effectively.
Genoot stated, “Building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure.” The $1 billion reserve will fund significant projects such as upgrading mining fleets and acquiring energy assets.
CFO Sean Glennan highlighted that the reserve allows the firm to manage market volatility while creating shareholder value through strategic treasury management.
Hut 8 Launches New Growth Programs
To support expansion plans, Hut 8 announced two financial programs: a $500 million at-the-market (ATM) equity offering for energy asset acquisitions and a $250 million stock repurchase plan allowing the buyback of up to 4.68 million shares, potentially enhancing shareholder value.
These initiatives reflect Hut 8's commitment to leveraging its Bitcoin reserves for operational expansion and shareholder returns. The growing reserves underscore the evolving role of cryptocurrencies in corporate finance, transforming mining rewards into a strategic asset for operational and long-term growth.