As a seasoned crypto investor with over a decade of experience in this wild West of digital assets, I’ve seen my fair share of ups and downs, bubbles, and bull runs. The recent news about Hut 8, a prominent North American Bitcoin miner, acquiring $100 million worth of Bitcoin has caught my attention.
As a researcher, I’m sharing an exciting update from the world of Bitcoin mining: Hut 8, a prominent North American Bitcoin miner, has declared its intention to acquire $100 million worth of Bitcoin. This move significantly boosts their existing holdings, pushing them past the $1 billion mark.
On December 19th, the firm disclosed that they had purchased 990 Bitcoins (BTC) at around $100 million in total, with each coin costing an average of approximately $101,710, as stated in their official announcement.
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 growth in Hut 8’s Bitcoin reserves is part of a rising pattern among institutions, as incorporating Bitcoin as a strategic investment option within financial portfolios gains increasing appeal, especially with the impending pro-cryptocurrency administration of President-elect Donald Trump in the United States.
Bitcoin acquisition
According to Hut 8, this acquisition will aid in our planned update of our mining operations, allowing us, as a Bitcoin mining company, to grow our mining capacities using a financial approach that utilizes our digital asset reserves. (Paraphrased)
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.
Strategic reserve management
According to Asher Genoot, CEO of Hut 8, their Bitcoin (BTC) reserve, which serves as a crucial element in their treasury plan, mirrors both their financial and operational strategies.
As we expand our mining activities and boost our edge in Bitcoin production costs, I believe the snowball effect will allow us to build up our crypto assets naturally at a substantial discount compared to current market rates, which I am excited about.
In simpler terms, this recent declaration supports the company’s objective of acquiring Bitcoin to the tune of $500 million as a strategic reserve, an ambition they strengthened through a recent stock buyback and shares offering worth $250 million.
Hut 8 class-action lawsuit
On December 2nd, Hut 8 submitted a request to throw out a class action lawsuit initiated by its shareholders. The reason given is that the lawsuit was instigated by a short-selling report which they claim was part of an orchestrated effort aimed at lowering Hut 8’s stock value for personal profit.
The company stated that the issue originated when J Capital Research aimed to make a profit from their short position in Hut 8, potentially disadvantaging regular stockholders.
The lawsuit stems 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.
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2024-12-19 15:58