Hut8 Acquires Additional 990 BTC to Increase Bitcoin Holdings to Over $1 Billion
Hut 8, a leading Bitcoin mining company in North America, has boosted its Bitcoin reserves to over $1 billion after acquiring 990 BTC for $100 million.
Hut 8 Surpasses $1 Billion in Bitcoin Reserves.
The acquisition was announced on December 19, with the company revealing an average purchase price of $101,710 per Bitcoin.
BREAKING: Hut 8 just made a bold move, purchasing 990 Bitcoin for $100M at an average price of $101,710/BTC.
With this addition, their strategic Bitcoin reserve now exceeds 10,000 BTC, valued at over $1 billion as of today! 🚀
The institutions are here. #Bitcoin #BTC pic.twitter.com/NPjFlzmplm
— Bit Is Cash (@BitisCash) December 19, 2024
Hut 8’s CEO, Asher Genoot, underscored the importance of the company’s growing Bitcoin reserves in achieving its financial goals.
He stated, “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 at a significant discount to market prices.”
On December 4, Hut 8 launched a $500 million at-the-market (ATM) program and a $250 million stock repurchase initiative to further strengthen its position. Proceeds from the ATM program will be used to expand digital infrastructure, acquire Bitcoin as a strategic reserve, and support operational needs.
The company’s latest acquisition aligns with its dual strategy of mining and purchasing Bitcoin to optimize its digital asset portfolio. Hut 8’s total holdings now stand at 10,096 BTC, with a realized average cost of $24,484 per Bitcoin.
These funds will also support the company’s planned upgrades to its mining fleet, further enhancing operational efficiency in BTC acquisition.
Institutional Interest Fuels Crypto Adoption
Hut 8’s investment reflects a broader trend of rising crypto adoption among institutions. Additionally, pro-crypto policies in the United States and other regions encourage companies to include Bitcoin in their reserves.
Despite its success, Hut 8 has faced legal hurdles. Earlier this month, the company filed a motion to dismiss a class-action lawsuit from shareholders. The lawsuit stems from a January report by J Capital Research, accusing Hut 8 of overstating profitability related to its acquisition of U.S. Bitcoin Corp.
Hut 8 called the allegations part of a short-selling strategy, claiming, “The case arose from a campaign to sink Hut 8’s stock for its own gain.” Despite these challenges, the company remains committed to defending its reputation and delivering value to shareholders.
With Bitcoin reserves now exceeding $1 billion, Hut 8 remains a significant player in the cryptocurrency sector.
Hut 8 has also invested in upgrading its mining operations by purchasing 31,145 BITMAIN Antminer S21+ ASIC machines, scheduled for delivery in Q1 2025.
This upgrade is expected to boost its self-mining hash rate by 3.7 exahashes per second (EH/s) while enhancing energy efficiency across its 111 MW of self-mining capacity.
Source: cryptonews.com
