Key Takeaways
- Hut 8 acquired 990 BTC for $100 million, averaging $101,710 per BTC.
- The company's Bitcoin reserve now totals 10,096 BTC, worth over $1 billion.
- The reserve supports growth initiatives, including a fleet upgrade.
Hut 8 Corp., one of North America’s largest Bitcoin miners, has expanded its Bitcoin reserve with the purchase of 990 BTC for $100 million, at an average price of $101,710 per Bitcoin.
This acquisition brings the company’s total holdings to 10,096 BTC, valued at over $1 billion as of Dec. 18, 2024.
Reserve strategy
The reserve, built through a combination of low-cost mining and strategic market purchases, has a realized average cost of $24,484 per Bitcoin.
This positions Hut 8 among the ten largest corporate Bitcoin holders globally.
The newly purchased Bitcoin will support a fleet upgrade announced earlier, which aims to improve operational efficiency and increase production capacity.
Financial flexibility
Hut 8’s strategic reserve serves as a flexible financial asset, enabling the company to optimize its balance sheet and fund growth initiatives in power and digital infrastructure.
The reserve may be leveraged through various financial strategies, such as options or pledges, depending on market conditions.
Management perspective
CEO Asher Genoot emphasized the reserve’s role in the company’s long-term strategy, stating:
Our Bitcoin reserve aligns our capital and operating strategies, enabling us to scale operations and create significant value for shareholders.
CFO Sean Glennan added that the reserve offers superior risk-adjusted returns compared to idle cash, providing flexibility for platform expansion and strategic opportunities.
