Hut 8, one of North America’s largest Bitcoin mining companies, announced a $100 million Bitcoin purchase, bringing its total BTC holdings to over $1 billion. According to a Dec. 19 press release, the company acquired 990 BTC at an average price of $101,710 per coin.
The purchase aligns with the bitcoin mining company’s strategy of combining low-cost Bitcoin production with strategic market acquisitions. This approach aims to maximize returns while positioning Bitcoin as a critical reserve asset for the company’s long-term financial strategy.
Hut 8’s growing BTC reserve reflects a broader institutional trend of adopting Bitcoin as a strategic financial asset. The acquisition comes at a time when the United States anticipates a pro-crypto administration under President-elect Donald Trump, further enhancing Bitcoin’s appeal as a portfolio reserve option.
Hut 8 Strengthening Mining and Treasury Strategies
The $100 million acquisition pushes Hut 8’s total Bitcoin holdings to 10,096 BTC, with a realized average cost of $24,484 per BTC. These holdings, which combine mined and purchased Bitcoin, are key to the company’s broader financial model.
According to CEO Asher Genoot, Hut 8’s BTC reserve is a “key component” of its treasury and operational 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,” Genoot stated.
The company plans to leverage its growing reserve to support a planned fleet upgrade and expand its mining capabilities, further cementing its position as a major player in the Bitcoin mining sector.
Strategic Fundraising and Legal Challenges
Hut 8 has been actively raising funds to bolster its Bitcoin reserves. The company aims to raise up to $500 million for BTC acquisitions, supported by a $250 million stock repurchase and share sale program announced earlier this year.
However, the company has faced legal challenges. On Dec. 2, Hut 8 filed a motion to dismiss a class-action lawsuit from shareholders, which it claims was spurred by a short-seller campaign. The lawsuit stems from allegations by J Capital Research, accusing Hut 8 of overstating the profitability of its acquisition of United States Bitcoin Corp. and concealing operational issues at a Texas facility.
Hut 8 has denied these allegations, stating that the lawsuit is an attempt by the short-seller to profit at the expense of shareholders.
