TL;DR
- Hut 8 acquired 990 BTC for $100 million, raising its strategic reserves to 10,096 BTC with a market value of $1 billion.
- The company plans to use its Bitcoin reserve for financial strategies and expansion projects, including infrastructure development and a more efficient mining fleet.
- With a historical cost of $24,485 per BTC, the firm combines low-cost mining with strategic purchases.
Hut 8, one of the leading Bitcoin miners in North America, announced the acquisition of 990 BTC for a total value of $100 million, reinforcing its position as one of the largest corporate owners of BTC globally.
With this transaction, the company increases its strategic reserves to 10,096 Bitcoin, with an estimated market value of $1 billion based on current prices. Hut 8 utilizes Bitcoin not only as a financial asset but also as a dynamic resource to drive its growth.
The average acquisition cost of the new BTC was $101,710 per unit, while the historical combined cost of production and purchase for Hut 8’s reserves remains at $24,485 per Bitcoin, thanks to efficient and controlled operations. This approach has allowed the company to benefit from low-cost mining, complemented by strategic acquisitions in the open market.
Hut 8 plans to use this Bitcoin reserve in various financial strategies, including options, pledges, and sales. Additionally, the company views Bitcoin as a flexible asset that will strengthen its overall balance sheet and enable funding for expansion projects, such as upgrading its mining fleet and developing energy and digital infrastructure. According to Asher Genoot, the company’s CEO, the accumulation of Bitcoin aims to create a multiplier effect in the growth of its operations and the generation of value for shareholders.
Hut 8’s Shares Rose 74% Over the Last Year
The acquisition is part of a plan that includes a recently announced $500 million share issuance program. These funds will be allocated to strategic projects, including further Bitcoin purchases. Additionally, Hut 8 projects increasing its self-mining capacity to 24 EH/s by the second quarter of 2025, strengthening its competitive advantage in the sector.
Hut 8 sees Bitcoin not only as an investment asset but also as a tool to optimize operations and enhance its financial position in the market. Its shares have risen 74% over the past year.
