Bitcoin miner Hut 8 has undertaken another buy of the og-cryptocurrency. On December 19th, the miner officially declared that it had bought about 990 Bitcoin. At an average of roughly $101,710 per Bitcoin, the total purchase price of the obtained Bitcoins was around $100 million.
Hut 8 at present stands as one of the firms with the highest Bitcoin acquisition.
Hut 8 Bitcoin Reserve Stands at $1 Billion
As of December 18, 2024, Hut 8’s strategic Bitcoin reserve stands at 10,096 Bitcoin, with a market worth of over $1 billion, when combined with the Bitcoin held before this acquisition.
According to information this puts it among the top ten corporate Bitcoin owners worldwide. The 10,096 Bitcoin that are kept in reserve were obtained at a realized average cost of $24,484 per Bitcoin through low-cost manufacture and the planned at-market acquisition.
What Will The Firm Use The Bitcoin For?
The Bitcoin that was purchased will be essential to a creative financing strategy for the company’s fleet overhaul, which was previously revealed.
“Our decision to establish a strategic Bitcoin reserve is rooted in our drive to deliver superior returns to our shareholders,” said Sean Glennan, CFO of Hut 8.
He added “With a significant war chest for growth, we are leveraging Bitcoin as part of a treasury management strategy designed to generate risk-adjusted returns that outperform idle cash.”
In addition, Hut 8 wants to continue actively managing and trading around assets in order to unlock further value, besides expanding the reserve through low-cost production and judicious at-market purchases.
Furthermore, the miner’s adaptable strategy is intended to guarantee that they are ready to strategically deploy their reserve to support platform expansion and generate long-term value in the event that attractive prospects inside the operational business present themselves.
Hut 8’s Other Projects
The Bitcoin miner Hut 8 Mining Corp ($HUT), based in Toronto, had announced that it is preparing a $12 billion project in West Feliciana Parish, Louisiana, as part of a strategy shift towards high-performance computing (HPC).
By attempting to enter the rapidly growing fields of artificial intelligence (AI) and machine learning (ML), the company is making a major move beyond Bitcoin mining.
With a 300 megawatt (MW) initial capacity and aspirations to grow to an incredible 1,000 MW, Hut 8’s proposed facility will be a Tier III data center.
The cutting-edge facility will make use of liquid-cooled GPU servers made for sophisticated AI and ML training tasks, according to the Planning & Zoning Department.