Hut 8, a Miami-based bitcoin miner, has made a significant move in the market by purchasing approximately 990 bitcoins for an average price of $101,710 each.
Bitcoin Miner Hut 8 Makes a Big Move with $100M BTC Purchase
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Hut 8, a Miami-based bitcoin miner, has made a significant move in the market by purchasing approximately 990 bitcoins for an average price of $101,710 each. This acquisition brings the total amount of bitcoin held in the company’s reserve to 10,096, valued at around $1 billion.
A Strategic Move to Boost Financial Position
The purchase is part of Hut 8’s strategy to expand its bitcoin reserve through various means, including options strategies, pledges, sales, or other methods. According to a statement by the company, this move will help strengthen its financial position and lower its cost of capital.
Hut 8’s CEO, Asher Genoot, emphasized the importance of the strategic reserve in an interview with CoinDesk: “Today, the market recognizes and values our strategic reserve, which effectively lowers our cost of capital and strengthens our financial position. As long as this market dynamic persists, we will remain opportunistic in expanding our Bitcoin reserve.”
A Growing Trend Among Miners
Hut 8’s decision to buy bitcoin in the open market follows a growing trend among miners. MicroStrategy, the largest corporate holder of bitcoin on its balance sheet, started this trend earlier this year, and MARA Holdings’ purchase of bitcoin in the open market has made it more prominent among miners.
Most recently, peer Riot Platforms bought 667 bitcoins at an average price of $101,135 on December 16. Buying large amounts of bitcoin in the open market has proven to be a successful strategy for miners, providing new avenues for raising funds and navigating the industry’s current profit squeeze after the recent Bitcoin halving event.
A Flexible Option for Growth
Hut 8 views its strategic reserve as a dynamic financial asset that can be actively managed to drive returns beyond simple price appreciation. The company plans to use this reserve to grow its business, with significant investments in expanding its core operating business and increasing self-mining capacity by Q2 2025.
The move has already had a positive impact on Hut 8’s shares, which have risen 74% this year, while CoinShares Valkyrie Bitcoin Miners ETF (WGMI) climbed 28%.
