Bitcoin mining company Hut 8 has decided to buy Bitcoin on the open market, following in the footsteps of MicroStrategy and MARA Holdings.
The Miami, Florida-based company said it purchased about 990 Bitcoins at an average price of $101,710 per Bitcoin. The purchase brings Hut 8's total Bitcoin holdings to 10,096, or a market value of about $1 billion, making it one of the top 10 largest Bitcoin holders.
Hut 8 plans to use its Bitcoin reserves through strategies such as options, collateral, sales, or other options. Hut 8 CEO Asher Genoot shared that the company will continue to take advantage of opportunities to buy more Bitcoin on the open market.
“The market has now recognized and valued our strategic reserves, which has reduced our cost of capital and strengthened our financial position. As long as this trend continues, we will continue to have opportunities to expand our Bitcoin reserves,” Genoot said.
The move follows Hut 8’s announcement earlier this month of a $500 million public offering, in which the company said a portion of the proceeds would be used to purchase Bitcoin on the open market, among other things.
MicroStrategy, the largest Bitcoin holder on its balance sheet, started the trend of buying Bitcoin on the open market. This trend only really gained momentum when MARA Holdings joined in this year. MARA recently purchased 15,574 BTC for $1.53 billion, at an average price of $98,529 per Bitcoin.
Additionally, Riot Platforms also recently purchased 667 Bitcoins at an average price of $101,135 on December 16.
Buying large amounts of Bitcoin on the open market has been profitable for miners, while also opening up new funding opportunities as the industry struggles with squeezed margins following the recent Bitcoin halving. Last month, MARA raised $1 billion in convertible debt — a financial instrument that allows investors to convert debt into equity — at zero interest rates, showing that investors are willing to give up interest income in exchange for equity ownership, thereby gaining exposure to Bitcoin.
Hut 8 asserts that keeping Bitcoin in reserve is a flexible option that allows the company to grow sustainably.
“We view our Bitcoin Reserve as a dynamic financial asset that can be actively managed to drive returns beyond simple price appreciation,” Genoot said. “Along with the significant investments we are making to expand our core business, with a goal of reaching 24 EH/s of mining capacity by Q2 2025, strategic open market purchases of Bitcoin can strengthen our balance sheet and help us prudently invest in long-term growth.”
Hut 8 shares are up 74% this year, while the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) is up 28%.
https://tapchibitcoin.io/hut-8-mua-100-trieu-do-la-bitcoin-mara-tich-15-574-btc.html
