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Hut 8 has acquired 990 Bitcoin for $100 million, boosting its total BTC holdings to over $1 billion as institutional adoption of cryptocurrency accelerates.
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Hut 8, one of North America’s largest Bitcoin miners, has announced a $100 million purchase of Bitcoin, increasing its holdings to over $1 billion.
The company announced on Dec. 19 that it acquired 990 Bitcoin (BTC) for approximately $100 million at an average cost of $101,710 per coin, according to a press release.
The purchase aligns with Hut 8’s strategy of combining low-cost Bitcoin production with opportunistic market buys to maximize returns and establish BTC as a reserve asset.
The expansion of Hut 8’s BTC reserve continues a growing trend among institutions as the option to include BTC as a strategic financial portfolio asset becomes more attractive, particularly as the United States prepares for a pro-crypto administration under President-elect Donald Trump.
Hut 8 latest 990 BTC acquisition. Source: GlobeNewswire
Related: Hut 8 to raise up to $500M to buy Bitcoin as a strategic reserve asset
Bitcoin acquisition
Hut 8 said the acquisition would help support its planned fleet upgrade, enabling the BTC mining company to expand its mining capabilities through a financial model that leverages its digital asset reserve.
The $100 million acquisition brings the firm’s BTC holdings up to 10,096 BTC at a realized average cost per BTC of $24,484, comprising its mined and purchased holdings.
Hut 8 total BTC holdings held in reserve and market value. Source: GlobeNewswire
Related: Bitcoin miners earned just 3.6% of record $2T market cap — Analysis
Strategic reserve management
Hut 8 CEO Asher Genoot said that the company’s strategic BTC reserve is a “key component” of its treasury strategy and aligns with its capital and operating strategies.
“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,” the Hut 8 CEO said.
This latest announcement aligns with the company’s goal to raise up to $500 million to buy BTC as a strategic reserve asset, which it furthered in a recent $250 million stock repurchase and share sale program.
Related: Bitcoin miner Hut 8 argues to toss ‘short and distort’ shareholder suit
Hut 8 class-action lawsuit
On Dec. 2, Hut 8 filed a motion to dismiss a class-action lawsuit from its shareholders, alleging that it was spurred by a short-seller report that established “a campaign to sink Hut 8’s stock for its own gain.”
The firm said the case arose from the short seller, J Capital Research, attempting “to obtain a monetary gain on its short position in Hut 8 at the expense of ordinary shareholders.”
The lawsuit stems from a January report by J Capital Research, which accused Hut 8 of overstating the profitability of its acquisition of United States Bitcoin Corp and concealing operational issues at a Texas facility.
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This article first appeared at Cointelegraph.com News
