Hut 8 acquires $100M worth of Bitcoin

Hut 8, a major Bitcoin (CRYPTO:BTC) mining firm, has increased its Bitcoin holdings to over $1 billion after acquiring 990 BTC for $100 million on December 19.

The acquisition was made at an average cost of $101,710 per Bitcoin.

This move is in line with Hut 8’s strategy to combine low-cost Bitcoin production with opportunistic market purchases.

The company aims to build Bitcoin as a reserve asset while maximising returns.

Hut 8 now holds a total of 10,096 BTC, with a realised average cost per Bitcoin of $24,484, which includes both mined and purchased holdings.

CEO Asher Genoot explained that the company's strategic Bitcoin reserve is an essential part of its treasury strategy.

“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,” he stated.

The Bitcoin purchase comes as part of Hut 8's broader plans to upgrade its mining fleet and expand its capabilities.

The acquisition is also part of a larger effort to raise up to $500 million to buy Bitcoin as a strategic reserve asset.

Additionally, the company has recently launched a $250 million stock repurchase and share sale program to fund these initiatives.

Despite facing legal challenges, including a class-action lawsuit filed in December, Hut 8 continues to focus on strengthening its position in the Bitcoin market.

The company’s decision to acquire more BTC reflects the ongoing trend of increasing institutional adoption of cryptocurrency as a long-term asset.

At the time of reporting, the price of Bitcoin (BTC) was $96,076.01.