Key Takeaways
- Hut 8 now holds over 10,000 BTC, valued at $1 billion.
- The company purchased 990 BTC for $100 million at $101,710 each.
- Hut 8 continues to pursue strategic Bitcoin acquisitions and mining expansion.
Hut 8 Mining, one of North America’s largest Bitcoin miners, has surpassed $1 billion in Bitcoin holdings following a $100 million acquisition of 990 BTC.
The purchase, announced on Dec. 19, was made at an average cost of $101,710 per Bitcoin.
Strategic Holdings Growth
This latest acquisition is part of Hut 8’s strategy to combine low-cost Bitcoin production with opportunistic market buys.
With the purchase, the company’s total holdings have grown to 10,096 BTC at an average cost of $24,484 per Bitcoin.
These holdings, a mix of mined and purchased Bitcoin, underline Hut 8’s commitment to using BTC as a strategic reserve asset.
CEO Statement
CEO Asher Genoot highlighted the importance of the company’s Bitcoin reserve strategy:
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.
Expansion Plans
Hut 8 has also initiated efforts to raise $500 million to support further acquisitions and mining expansion.
This includes a $250 million stock repurchase and share sale program announced recently.
Legal Challenges
The firm remains embroiled in a class-action lawsuit stemming from claims by short-seller J Capital Research, accusing Hut 8 of overstating the profitability of its operations.
Hut 8 has filed to dismiss the lawsuit, stating the accusations are part of a campaign to damage its stock value.
