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

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

The stash, now valued at over $1 billion, places Hut 8 among the largest Bitcoin companies (BTC) holders worldwide.

The company bought coins at an average price of $101,710, significantly higher than its cumulative acquisition cost of $24,484 per Bitcoin. Hut 8 attributes its historically lower average cost to efficient mining operations and strategic acquisitions, as noted in its press release.

The move follows examples given by crypto-focused companies like Microstrategy And work on itwho have set up Bitcoin reserves as part of their growth strategies.

Bitcoin funds will support mining equipment

The newly acquired Bitcoin will support an innovative financing model to modernize its mining fleet. Hut 8 plans to improve its mining operations by upgrading 111 MW of self-mining capacity.

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

CEO Asher Genoot said the reserve strengthens Hut 8’s financial position as it expands into power and digital infrastructure.

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

Cabin 8 spear a market offering and share repurchase program earlier this month to fund its Bitcoin treasury and business strategy. The company aimed to raise $500 million for its BTC reserves and $250 million for share buybacks to strengthen its position during times of market volatility.