Hut 8 surpasses $1B in Bitcoin holdings after $100M acquisition

Hut 8, one of North America’s largest Bitcoin miners, announced a $100 million purchase of Bitcoin that increased its holdings to over $1 billion.

The company announced on Dec. 19 that it acquired 990 Bitcoin ( BTC ) for about $100 million at an average cost of $101,710 per coin, according to a news 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 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,” he said.

This latest announcement aligns with the company’s goal of raising up to $500 million to buy BTC as a strategic reserve asset, which it furthered with 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, claiming it had been prompted by a short-seller report that was part of “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 stemmed 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.

Magazine: 13 Christmas gifts that Bitcoin and crypto degens will love