The pact with the Ontario Independent Electricity System Operator will provide HUT a steady income stream and help address Ontario’s projected electricity demand growth.
The company said $10 million of the total amount raised came in the form of bitcoin, at a rate of $104,000 per BTC.
The amended facility adds $65 million in capital availability and trimmed the interest rate to 9%.
Pre-market spikes follow news of strategic stock-for-stock transaction.
The bitcoin miner held over 10,000 bitcoin at the end of last year.
Major North American Bitcoin (BTC) mining company Hut 8 has further expanded its BTC holdings with a $100 million acquisition. This latest purchase has pushed the company’s total reserves to over 10,096 BTC, valued at more than $1 billion at current market prices. Hut 8 Bitcoin Reserves Top $1 Billion The Miami-headquartered cryptocurrency mining firm continues to increase its Bitcoin reserves, undeterred by BTC’s recent price surges. In its latest announcement, Hut 8 revealed the purchase of approximately 990 BTC for $100 million, at an average price of $101,710 per Bitcoin. Related Reading: Metaplanet To Expand Bitcoin Holdings With $11.3 Million Bond Sale This acquisition has propelled Hut 8’s total BTC holdings to over $1 billion, with the coins acquired at an average cost of $24,485 per Bitcoin. The move reflects the company’s strategy of combining low-cost BTC production with what it views as strategic market buys to maximize returns and strengthen its reserve assets. Notably, Hut 8’s recent purchase positions it among the top 10 largest corporate holders of Bitcoin globally. MicroStrategy remains the leader on this list, holding more than 250,000 BTC on its balance sheet. Commenting, Asher Genoot, CEO, Hut 8, said: We believe deeply in our operating business and that building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure. Additionally, 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, strengthening the yield of our reserve strategy. Echoing these sentiments, Hut 8 CFO, Sean Glennan explained that making BTC a reserve asset was a key component of the company’s strategy to deliver “superior returns” to shareholders through strategic treasury management. He added that the company is open to deploying its BTC reserve to support business objectives, such as upgrading its mining fleet. Earlier this month, Hut 8 unveiled a massive $750 million initiative aimed at general corporate objectives, debt repayment, and bolstering its Bitcoin reserve. On a year-to-date basis, Hut 8’s stock has surged by over 102%, trading at $27.11 at the time of writing. 4 Mining Firms Among Top 10 Corporate BTC Holders While companies like MicroStrategy, Tesla, Block, and Coinbase are well-known among the top corporate Bitcoin holders, four Bitcoin mining firms also feature on this prestigious list, namely, Marathon Digital Holdings, Hut 8, Riot Blockchain, and CleanSpark. Related Reading: Bitcoin Adoption Grows As Rumble Unveils $20 Million BTC Treasury Strategy Last year, Riot Blockchain reported a significant increase in its BTC holdings. At the time of writing, the Bitcoin mining firm holds a total of 8,490 BTC. Similarly, earlier this month, Marathon Digital Holdings purchased another 703 BTC to increase its total reserves to 34,794 BTC. This move aligns with Marathon CEO’s previous statement that institutions are “waiting to buy up” Bitcoin. In October, CleanSpark CEO Zach Bradford predicted that BTC may peak around $200,000 in the next 18 months. At press time, BTC trades at $100,543, down 3.1% in the past 24 hours. Featured image from Unsplash, Charts from Yahoo! Finance and Tradingview.com
Hut 8 has acquired 990 Bitcoin for $100 million, boosting its total BTC holdings to over $1 billion as institutional adoption of cryptocurrency accelerates.
The miner bought about 990 bitcoin for average price of around $101,710 each.
HUT shares climbed to just under $30 as of 10:00 UTC, over 11.75% higher than its Wednesday closing price of $26.69.
Hut 8, one of the largest Bitcoin mining companies globally, has announced a significant strategic move aimed at creating a strategic Bitcoin reserve. The initiative, totaling $750 million includes a $500 million at-the-market (ATM) program and a $250 million stock buyback plan. Hut 8’s Strategic Bitcoin Reserve Initiative Hut 8’s CEO, Asher Genoot, articulated the company’s vision, stating that the launch of the new ATM Program and Stock Repurchase Program has equipped the business with “two powerful tools” that he believes bolsters the firm’s ability to endure the market’s volatility. Related Reading: BNB Surges 18% To Hit Record High Close To $800: Is Further Growth On The Horizon? The ATM program will allow Hut 8 to sell its common stock directly in the market, providing flexibility to raise funds as needed. In contrast, the stock buyback plan demonstrates the company’s confidence in its long-term growth prospects. Genoot emphasized that these financial maneuvers send a clear message to investors about their belief in Hut 8’s potential and its approach to treasury management. The net proceeds from the ATM program are earmarked for several growth initiatives. This includes investing in power and digital infrastructure, acquiring data centers, and purchasing Bitcoin to bolster its strategic reserve. Additionally, the funds may be allocated for general corporate purposes, such as repaying debts and enhancing working capital. Growing Trend Among Crypto And Traditional Financial Firms Sales under the ATM program will adhere to the guidelines outlined in the Securities Act of 1933 and will be conducted on the Nasdaq Global Select Market. Hut 8 disclosed it has filed the necessary prospectus and supplementary documents with the US Securities and Exchange Commission (SEC) to ensure full compliance with regulatory requirements. The stock repurchase initiative is part of Hut 8’s broader capital management strategy. It allows the company to buy back up to 4.68 million shares, representing about 5% of its outstanding stock, over the next year. Importantly, both programs provide Hut 8 the flexibility to adjust their strategies based on market conditions, share prices, and regulatory requirements. Related Reading: XRP Under The Microscope: Will It Break $2.9? Key Support Levels And Future Targets As Bitcoin’s price has surged, particularly following the recent US elections, there’s been a noticeable trend among both crypto firms and traditional financial institutions—including healthcare, social media, and artificial intelligence sectors—to adopt similar strategies. Bitcoinist previously reported that just in November, nine global companies adopted Bitcoin as part of their treasury to capitalize on the previous month’s 40% surge which led to the cryptocurrency’s current record high of $99,540. This is further bolstered by President-elect Trump’s proposal earlier this year in Nashville, where he announced his intention to create a national Bitcoin stockpile and a purchase strategy instead of selling the government’s current holdings, which are close to 1% of the total supply. At the time of writing, BTC is trading at $95,490, down 0.4% over the past 24 hours. Featured image from DALL-E, chart from TradingView.com
Hut 8 stock surged almost 8% following the announcement of the stock repurchase program.
Hut 8 has argued a lawsuit from its shareholders arose “from a short seller’s attempt to obtain a monetary gain on its short position” in the crypto miner.
Deficit spending and lower interest rates have boosted global liquidity higher, benefiting Bitcoin and related markets, Blockware’s Mitchell Askew said.
While both Hut 8 and Irish Energy expanded operations, they reported contrasting results in Bitcoin production efficiency.
The cryptocurrency mining company now has 1,000 Nvidia GPUs available.
Mining revenues hit 12-month lows in August, according to Bitbo.
The broker upgraded the bitcoin miner's shares to buy from sell and raised its price target on the stock to $13.50 from $7.50.
Analysts from investing banking firm Benchmark initiated coverage on Hut 8, issuing a “buy” rating and setting a $12 target for the firm’s share price.
Former CEO Jamie Leverton is succeeded by president Asher Genoot.
The report by short-selling firm JCapital Research led to HUT sliding more than 23% on Jan. 18.
The firm’s share price decline came just before activist short-selling firm JCapital Research released an unverified report warning Hut 8 investors of an “upcoming pump and dump.”