Coinspeaker Hut 8 Bolsters Bitcoin Portfolio with $100 Million Purchase
Hut 8, one of the leading cryptocurrency mining companies in North America, has increased its Bitcoin BTC $100 075 24h volatility: 4.2% Market cap: $1.97 T Vol. 24h: $106.47 B portfolio with the acquisition of 990 BTC on Thursday, December 19.
According to an announcement, the latest purchase was made at an average price of $101,710 per coin, bringing its total cost to approximately $100 million. As of today, Hut 8 holds 10,096 bitcoins with a market value of roughly $1 billion at an average cost of $24,484 per Bitcoin.
Hut 8 Joins Top Corporate Bitcoin Holders
The acquisition of 990 BTC has positioned the company among the top 10 corporate holders of the leading cryptocurrency. Hut 8 plans to explore additional opportunities to grow its Bitcoin portfolio further in the coming years.
As a crypto mining firm, Hut 8 generates most of its Bitcoin holdings through mining rewards for its contributions to securing the Bitcoin blockchain. However, the company has also opted to increase its reserves through direct market purchases.
The company views its Bitcoin reserve as a pivotal asset in driving long-term growth and unlocking value for its shareholders. According to Hut 8 CEO Asher Genoot, the Bitcoin reserve is a cornerstone of the firm’s financial strategy, enabling it to align capital and operational initiatives for maximum impact.
“We believe deeply in our operating business and that building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure. Additionally, as we scale operations and extend our cost advantage in Bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically,” Genoot said.
The $1 billion Bitcoin reserve will be utilized to fund significant growth initiatives, including upgrading mining fleets, acquiring energy assets, and developing cutting-edge infrastructure.
Additionally, Hut 8 CFO Sean Glennan noted that the reserve enables the firm to navigate market volatility effectively while creating value for shareholders through strategic treasury management.
Hut 8 Launches New Growth Programs
To support its ambitious plans, Hut 8 recently announced two financial programs. The first is a $500 million at-the-market (ATM) equity offering aimed at funding energy asset acquisitions and other expansion projects. The second is a $250 million stock repurchase plan, which allows the company to buy back up to 4.68 million shares, potentially enhancing shareholder value.
These initiatives reflect Hut 8’s commitment to leveraging its Bitcoin reserves for both operational expansion and shareholder returns.
Meanwhile, Hut 8’s growing Bitcoin reserves highlight the evolving role of cryptocurrencies in corporate finance. By treating Bitcoin as a versatile asset, the company has transformed its mining rewards into a strategic reserve, supporting both operational needs and long-term growth.
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Hut 8 Bolsters Bitcoin Portfolio with $100 Million Purchase
