Leading North American Bitcoin (BTC) mining company Hut 8 has further expanded its BTC holdings with a $100 million acquisition. This latest purchase has pushed the company's total reserves to over 10,096 BTC, worth over $1 billion at current market prices.
Hut 8 Bitcoin reserves the highest $1 billion
The Miami-headquartered cryptocurrency mining company continues to increase its Bitcoin reserves, unfazed by BTC's recent price increases. In his latest release, Hut 8 show up buy about 990 BTC for $100 million, at an average price of $101,710 per Bitcoin.
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This acquisition has moved Hut 8's total BTC holdings to over $1 billion, with the coins being acquired at an average cost of $24,485 per Bitcoin. This move reflects the company's strategy of combining low-cost BTC production with what it sees as strategic purchases in the market to increase output and strengthen its assets.
Notably, the recent purchase of Hut 8 places it among the 10 largest corporate holders of Bitcoin globally. MicroStrategy is still the leader of this list, holding more than 250,000 BTC on its balance. Speaking, Asher Genoot, CEO, Hut 8 said:
We believe deeply in our operating business and that building a strategic Bitcoin reserve will strengthen our financial position as we pursue significant growth initiatives across power and digital infrastructure. Additionally, as we scale operations and expand our cost advantage in Bitcoin production, we expect the flywheel effect to allow us to organically grow our holdings at a significant discount to market prices, enhancing the yield of our reserve strategy.
Responding to these sentiments, Hut 8 CFO, Sean Glennan explained that making BTC a reserve asset was a key part of the company's strategy to deliver “better returns” to shareholders through financial management strategic. He also said that the company is willing to use its BTC reserve to support business goals, such as upgrading its mining fleet.
Earlier this month, Hut 8 show up a massive $ 750 million campaign aimed at general corporate goals, debt repayment, and the strengthening of its Bitcoin reserve. Year to date, Hut 8 stock has increased by more than 102%, trading at $27.11 at the time of writing.
4 Mining Companies Among the top 10 physical BTC holders
While companies like MicroStrategyTesla, Block, and Coinbase are famous among the main corporate Bitcoin holders, four Bitcoin mining companies also appear on this prestigious list, namely, Marathon Digital Holdings, Hut 8, Riot Blockchain, and CleanSpark.
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Last year, Riot Blockchain reported a huge increase in his BTC holdings. At the time of writing, the Bitcoin mining company holds a total of 8,490 BTC.
Similarly, earlier this month, Marathon Digital Holdings bought Another 703 BTC to increase their total reserves to 34,794 BTC. This move is in line with the previous Marathon CEO report that institutions are “waiting to buy Bitcoin up.
In October, CleanSpark CEO Zach Bradford predict that BTC could reach around $200,000 in the next 18 months. At press time, BTC is trading at $100,543, down 3.1% in the past 24 hours.
Featured image from Unsplash, Cards from Yahoo! Finance and Tradingview.com
