Hut 8’s Bitcoin Reserve Surpasses $1B After $100M Purchase

Hut 8, a major Bitcoin mining company, has recently made a significant move by acquiring an additional 990 Bitcoin for $100 million, pushing its total Bitcoin reserve to 10,096 BTC. This acquisition brings Hut 8’s Bitcoin holdings to a valuation of over $1 billion, solidifying its position as one of the largest corporate Bitcoin holders globally.

The company purchased the additional Bitcoin at an average price of $101,710 each. This is significantly higher than the cumulative average acquisition cost of $24,484 per Bitcoin that Hut 8 has maintained over time. The company attributes its historically lower average cost to its efficient mining operations and strategic acquisitions. This recent purchase also signals a strategic decision to increase its Bitcoin reserves in line with the growing trend among crypto-focused companies, such as Microstrategy and Travala, which have also embraced Bitcoin as a key part of their corporate strategies.

The newly acquired Bitcoin will serve as a key element in Hut 8’s innovative financing model, aimed at upgrading its mining fleet. Hut 8 plans to enhance its self-mining capacity by upgrading 111 megawatts (MW) of energy, which is expected to increase the company’s hashrate by 66%, reaching 9.3 exahashes per second (EH/s) by early 2025. This upgrade will also improve the company’s operational efficiency by reducing energy consumption, a critical factor in mining operations.

CEO Asher Genoot explained that the Bitcoin reserve enhances Hut 8’s financial position and supports the company’s broader strategy as it expands into power and digital infrastructure. He emphasized that the reserve creates a “flywheel effect” that aligns Hut 8’s capital and operational strategies, ultimately accelerating the creation of value across the business.

To fund its Bitcoin treasury and corporate strategy, Hut 8 launched an at-the-market offering and a stock repurchase program earlier in the month. The company aims to raise $500 million for its Bitcoin reserves and $250 million for stock buybacks, aiming to bolster its position amid market volatility. This strategic move highlights Hut 8’s commitment to strengthening its financial standing while positioning itself for future growth in the rapidly evolving crypto mining industry.