Hut 8’s Bitcoin reserve tops $1b after $100m purchase

Hut 8, a Bitcoin mining company, added 990 Bitcoins to its reserves and spent $100 million to bring its total holdings to 10,096 BTC.

Currently valued at over $1 billion, the reserve places Hut 8 among the largest institutional holders of Bitcoin (BTC) worldwide.

The company purchased the coins for an average price of $101,710; this was significantly higher than the cumulative acquisition cost of $24,484 per Bitcoin. Hut 8 attributes its historically low average cost to efficient mining operations and strategic acquisitions, as noted in the press release.

This move follows examples set by crypto-focused businesses such as Microstrategy and Travala, which have implemented Bitcoin reserves as part of their growth strategies.

Bitcoin funds will support mining equipment

The newly purchased Bitcoin will support an innovative financing model to develop the mining fleet. Hut 8 plans to expand its mining operations by increasing its self-mining capacity to 111 MW.

The upgrade is expected to increase hashrate by 66% to 9.3 EH/s by early 2025 and increase efficiency by reducing energy consumption.

Hut 8 announced today that it purchased approximately 990 Bitcoins for approximately $100 million, or an average of $101,710 per Bitcoin. Combined with the Bitcoin held before this purchase, the total of Hut 8’s strategic Bitcoin reserve now totals more than 10,000 Bitcoins. pic.twitter.com/BhgCNMMEU

— Hut 8 (@Hut8Corp) December 19, 2024

CEO Asher Genoot noted that the reserve has strengthened Hut 8’s financial position as it expands into power and digital infrastructure.

“The strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,” Genoot said.

Hut 8 launched a launch and share buyback program earlier this month to fund its Bitcoin treasury and corporate strategy. The company aimed to raise $500 million for BTC reserves and $250 million for share buybacks to strengthen its position during market volatility.