Hut 8 corporation recently acquired 990 Bitcoin at $100 million, putting the value of its entire cache just above $1 billion. With the purchase, the firm has entered into a league of the highest Bitcoin holders in the world. Despite its legal tussle with J Capital Research over allegedly overstating its Bitcoin deals, the firm sees the purchase as the right move to aid growth.
The company‘s total Bitcoin is 10.096, buying each at an average cost of $24,484 per BTC. The company feels that the purchase will strengthen its financial position and aid in its scalability push by ensuring a competitive edge. The firm also hopes to reward its shareholders with great returns through its Bitcoin reserve, effective production, and strategic purchases.
Hut 8 highlights its Bitcoin vision
According to Hut 8 CEO Asher Genoot, the investment will enable the company to increase value across its business. “A key component of our treasury strategy, the strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,” he said.
The company’s CFO Sean Glennan also buttressed Genoot’s position, claiming the firm wants to provide profits to its shareholders. “Our decision to establish a strategic Bitcoin reserve is rooted in our drive to deliver superior returns to our shareholders,” Glennan said.
Genoot also noted that the decision will help the company’s profitability and drive its long-term growth. He noted that with the company’s present practices, it can grow its Bitcoin reserves to a strategic position in the market. This trend is rampant among institutions adopting BTC.
Legal troubles amid Bitcoin adoption
Despite Hut 8’s exploits in the Bitcoin sector, it is facing a big lawsuit from its shareholders. The firm recently filed a motion to dismiss a lawsuit led by J Capital Research, claiming the firm was using it as a tactic to drive the price of its stock down for its gain.
The lawsuit was filed after J Capital Research accused the firm of exaggerating the benefits of purchasing a Bitcoin corporation. The firm also claimed that Hut 8 is also trying to hide problems at a facility in Texas. Hut 8 noted that the lawsuit will hurt regular shareholders if the price of its stock tanks, a move that will benefit J Capital Research.
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