According to Cointelegraph, North American Bitcoin mining company Hut 8 has unveiled a $500 million stock repurchase initiative aimed at fueling growth, including the acquisition of Bitcoin as a strategic reserve. The company's at-the-market (ATM) offering program will facilitate the sale of up to $500 million in common stock. The proceeds are earmarked for acquiring or developing power and digital infrastructure, establishing a Bitcoin strategic reserve, and other corporate purposes such as capital expenditures and debt repayment.
Hut 8's CEO, Asher Genoot, emphasized the significance of the ATM Program and Stock Repurchase Program, stating that these tools enhance the company's ability to navigate volatile markets. The stock repurchase program is part of Hut 8's capital management strategy, allowing the repurchase of up to 4.68 million shares of common stock, representing 5% of the total outstanding stock over the next year. Genoot highlighted that these initiatives support a robust, integrated capital strategy, reinforcing the company's proactive approach to treasury management.
Earlier this year, Hut 8's stock (HUT) experienced a dip to $6.33 in January following a report by a short-seller that unsettled investors. However, the stock has since rebounded by 326%, reaching $27.03 as of December 4, according to Google Finance. This week, Hut 8 filed a motion to dismiss a class-action lawsuit from shareholders, arguing that the lawsuit was merely capitalizing on the "short and distort" short-seller report.
Hut 8 joins a growing list of companies investing in a Bitcoin reserve strategy. In recent weeks, other firms such as AI education tech company Genius Group, biopharmaceutical company Hoth Therapeutics, video-sharing platform Rumble, and Canadian wellness firm Jiva Technologies have also announced their own Bitcoin strategic reserves.
