Hut 8, a Bitcoin mining company, has added 990 Bitcoin to its reserves, spending $100 million to increase its total holdings to 10,096 BTC.
The reserve, now valued at over $1 billion, places Hut 8 among the largest corporate Bitcoin (BTC) holders globally.
The company purchased the coins at an average price of $101,710, significantly higher than its cumulative acquisition cost of $24,484 per Bitcoin. Hut 8 credits its historically lower average cost to efficient mining operations and strategic acquisitions, as outlined in its press release.
This move follows examples set by crypto-focused businesses like Microstrategy and Travala, which have implemented Bitcoin reserves as part of their growth strategies.
You might also like: HODL Day in crypto: How a typo became a celebration
Bitcoin funds will support mining equipment
The newly acquired Bitcoin will support an innovative financing model for upgrading its mining fleet. Hut 8 plans to enhance its mining operations by upgrading 111 MW of self-mining capacity.
The upgrade is expected to boost its hashrate by 66% to 9.3 EH/s by early 2025 while improving efficiency by reducing energy consumption.
Hut 8 today announced the purchase of approximately 990 Bitcoin for approximately $100 million, or an average of approximately $101,710 per Bitcoin. Combined with the Bitcoin held prior to this purchase, Hut 8’s strategic Bitcoin reserve now totals more than 10,000 Bitcoin with a… pic.twitter.com/BhgCNMMEJu
— Hut 8 (@Hut8Corp) December 19, 2024
CEO Asher Genoot stated that the reserve fortifies Hut 8’s financial position as it expands into power and digital infrastructure.
“The strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,” said Genoot.
Hut 8 launched an at-the-market offering and stock repurchase program earlier this month to fund its Bitcoin treasury and corporate strategy. The company aimed to raise $500 million for its BTC reserves and $250 million for stock buybacks to strengthen its position during market volatility.
