30s Summary

North American Bitcoin mining company Hut 8 has acquired Bitcoin worth $100 million, taking its total holdings to over $1 billion. The purchase price per Bitcoin averaged at around $101,710. The purchase forms part of the company’s strategy to mix cheap bitcoin production and strategic market purchases. The investment also supports Hut 8’s plan to upgrade their mining fleet, and compliments their goal to raise $500 million for Bitcoin reserve. The company was recently embroiled in a lawsuit filed by its shareholders.

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Hut 8, a big player in the Bitcoin mining scene in North America, recently bought a staggering $100 million worth of Bitcoin. This ramps up the company’s Bitcoin holdings to a cool $1 billion plus.

The firm let everyone know on December 19 that it acquired 990 Bitcoin, shelling out roughly $100 million. This averages out to about $101,710 per coin.

Hut 8’s purchase is part of their game plan to combine cheap Bitcoin production with market buys when the timing’s right. The endgame? Maximize returns and make Bitcoin an important reserve asset. Institutions are also warming up to this trend, indicating that Bitcoin is becoming an attractive strategic financial asset. This is especially true as America gears up to welcome a Bitcoin-friendly administration under President-elect Donald Trump.

Hut 8 explained that this purchase will play a significant role in supporting their plan to upgrade their fleet. It opens up more opportunities for them to ramp up their mining capabilities. On top of that, this purchase brings the company’s Bitcoin holdings to an impressive total of 10,096 Bitcoin. This reflects an average cost per Bitcoin of $24,484.

The Hut 8 CEO, Asher Genoot, shared that the company’s strategic Bitcoin reserve is an important ingredient in their financial strategy. He expressed his anticipation for the company’s growing holdings, which he expects will come at a big discount compared to market prices due to their cost advantage in Bitcoin production.

Adding icing to the cake, the news aligns with Hut 8’s aim to raise as much as $500 million to buy Bitcoin as a strategic reserve asset. They have already advanced this plan with a recent stock repurchase and share sale program that netted $250 million.

On a side note, Hut 8 faced a lawsuit from its shareholders, which led them to file a motion to dismiss it on December 2. The company believes the allegations stemmed from a report by a short-seller hoping to benefit from a dip in Hut 8’s stock.