A leading Bitcoin mining company called Hut 8 has added 990 BTC to its Bitcoin reserves, now boasting a total of 10,096 BTC. Hut 8’s treasury has become valued in excess of $1 billion, and with the $100 million investment it is at vice the scale of any other corporate holder of Bitcoin.
At an average price of $101,710 per bitcoin, the company acquired the new bitcoins more than seven times its total average acquisition cost, or $24,484 per BTC. A company press release from Hut 8 attributes the lower historical cost to efficient mining operations and strategic acquisitions.
Hut 8 Expands Bitcoin Reserves to Boost Growth and Efficiency
This also fits in with crypto focused firms’ strategies such as MicroStrategy and Travala with BTC reserves backing growth and financial stability. The expansion of Hut 8’s reserves will be utilized to build out its existing mining infrastructure with a financing model, says the company.
Upgrading 111 MW of the company’s self mining capacity will help it expand operations as they look to up their hashrate by 66% and reach 9.3 EH/s by early 2025. Besides, the upgrade will help to save energy and energy efficiency.
The BTC reserve drives long term growth, said Hut 8 CEO Asher Genoot. “By supporting a flywheel effect between our capital and operating strategies, the strategic BTC reserve aligns us to create more value across the business,” he said.
Hut 8 launched an at the market offering and stock repurchase program earlier this month to raise $500 million for its BTC treasury and $250 million for stock repurchases. The moves are aimed at building the company’s financial position in a volatile market.
Hut 8 is backing up its reputation as a Bitcoin mining and digital infrastructure leader with its latest acquisition and infrastructure plans.
