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Bitcoin Mining giant Hut 8 has made a $100 million strategic investment in the Cryptocurrency, bringing its holdings to more than $1 billion. Thus consolidating its position as one of the ten largest institutional investors in the market.
This move follows the example of MicroStrategy, which has implemented Bitcoin reserves as part of its growth strategies.
Hut 8 today announced the purchase of approximately 990 Bitcoin for approximately $100 million, or an average of approximately $101,710 per Bitcoin. Combined with the Bitcoin held prior to this purchase, Hut 8’s strategic Bitcoin reserve now totals more than 10,000 Bitcoin with a… pic.twitter.com/BhgCNMMEJu
— Hut 8 (@Hut8Corp) December 19, 2024
According to a statement, the company announced on December 19 that it acquired 990 Bitcoin for approximately $100 million, at an average cost of $101,710 per coin, complementing its previous holdings. Hut 8’s total holdings now stand at 10,096 BTC, at an average realized cost per BTC of $24,485.
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This significant reserve allows Hut 8 to leverage its assets in multiple ways, including financing large-scale projects and optimizing its balance sheet.
Recall that on December 4, Hut 8 launched a $500 million ATM share purchase program and a $250 million share buyback initiative to further strengthen its position. Proceeds from the ATM program will be used to expand digital infrastructure, acquire Bitcoin as a strategic reserve, and support operational needs.
Hut 8: Increasing your power in the world of Bitcoin
Indeed, the current acquisition is part of Hut 8’s strategic vision of positioning Bitcoin as a fundamental asset on its balance sheet. By combining its own production with timely purchases, the company seeks to maximize the return on investment in the long term and consolidate its leadership in the sector.
Commenting on the acquisition, Asher Genoot, CEO of Hut 8, said: “A key component of our treasury strategy, the Bitcoin Strategic Reserve, supports a flywheel effect that aligns our operational and capital strategies to accelerate value creation. throughout the business.
At Hut 8, we’re more than a Bitcoin mining company—we’re an energy infrastructure platform.
Bitcoin plays a strategic role, but our broader focus includes building large-scale infrastructure to support technologies like AI, high-performance computing, and more.
— Asher Genoot (@ashergenoot) December 19, 2024
Furthermore, he stated: “We deeply believe in our operating business and that building a strategic reserve of Bitcoin will strengthen our financial position as we pursue large-scale growth initiatives in the areas of energy and digital infrastructure.”
The key to growth and profitability
For his part, Sean Glennan, CFO of Hut 8, said: “Our decision to establish a strategic Bitcoin reserve is based on our desire to deliver superior returns to our shareholders.”
Adding: “With a significant reserve fund for growth, we are leveraging Bitcoin as part of a treasury management strategy designed to generate risk-adjusted returns that exceed idle cash. “Our flexible approach is designed to ensure that if attractive opportunities arise within our operating business, we are prepared to strategically deploy our reserve to drive platform expansion and create long-term value.”
In closing, Hut 8’s decision to accumulate a $1 billion Bitcoin reserve marks a milestone in the institutional adoption of cryptocurrencies. This strategy not only positions the company as a leader in the sector, but also lays the foundation for a future where digital assets play an increasingly central role in the global economy.
I say goodbye with this phrase from Asher Genoot: “Every large company or country in operation should have a Strategic Reserve of Bitcoin.”
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