The post Hut 8 Acquires 990 Bitcoin for $100 Million, Reaches $1 Billion in Holdings appeared on BitcoinEthereumNews.com.

Hut 8 acquires 990 Bitcoin for $100 million. Now, it has reached $1 billion in holdings. The strategic reserve supports capital growth plans. Hut 8, one of North America’s largest Bitcoin miners, has announced the purchase of 990 Bitcoin for $100 million. The acquisition brings the company’s endemic Bitcoin holdings to 10,096, at once worth in trim exceeding $1 billion as of December 18, 2024. This news was shared on the Hut 8 official X account. The price of the newly acquired Bitcoin is an average of $101,710 per coin. This puts Hut 8 as one of the world’s top ten biggest corporate Bitcoin holders. Through low-cost production and a recent strategic purchase, Hut 8 acquired the 10,096 Bitcoin it holds. On average, the reserve has a cost of $24,484 per Bitcoin. The company’s financing model for the fleet upgrade previously announced will involve much of this strategic reserve. This will also help fund capital intensive growth initiatives such as the building out of power and digital infrastructure. Hut 8 Leverages Bitcoin Reserve for Capital Strategy and Growth A key part of Hut 8’s capital strategy is its Bitcoin reserve. This reserve gives the company a range of options to leverage this reserve through, options, sales, or pledges to optimize its balance sheet and fund growth. The decisions to engage the reserve will be made on a case-by-case basis using a cost-benefit analysis to generate maximum returns on capital. According to the press release, Hut 8 says the strategic Bitcoin reserve helps align Hut 8’s capital and operating strategies, as CEO Asher Genoot explained. The company plans to grow the reserve organically and as the company grows and improves its Bitcoin production. The ‘flywheel effect’ will help Hut 8 acquire more Bitcoin at a discount to the market price strengthening…

---

Filed under: News - @ December 21, 2024 6:19 pm