Bitcoin company Hut8 acquires another 990 BTC for strategic reserve

Hut8 Mining Corp. acquired another 990 Bitcoin (BTC) for its strategic reserve, increasing its balance to a total of 10,096 BTC. 

Hut8, one of the largest corporate miners, increased its Bitcoin (BTC) reserve to 10,096 coins, valued at over $1B. The corporation takes over the trend of building corporate treasures through debt acquisition, following recent bigger purchases from MARA Holdings and MicroStrategy.

Hut8 purchased the additional BTC just weeks after the company’s CEO, Asher Genoot , asked about expanding the reserve. 

Hut8 is solidly within the top 5 corporate holders of BTC after the most recent purchase. | Source: Bitcoin Treasuries

Hut8 grew its balance by another 990 BTC, acquired after a planned $100M purchase. With the latest addition to the treasury, Hut8 rose to the top 4 spot among corporate holders, surpassing the passive holdings of Tesla, Inc. Hut8 is also closing in on the Royal Government of Bhutan, which still holds 11,688K BTC strictly from mining operations. 

While Mara Holdings and MicroStrategy are leaders in recent BTC acquisitions, Hut8 leads the rest of the pack. Recent updates to treasuries also came from CleanSpark, Galaxy Digital, Semler Scientific, Canaan Mining, and others. 

Hut8 remains dedicated to carrying one of the biggest energy infrastructure sources for US-based mining, with around 20 EH/s in mining capacity, with the goal of expanding above 33.5 EH/s. The company has reached an agreement with Bitmain to upgrade to its latest generation of ASIC miners. Additionally, Hut8 controls 762 MW in available power as of September 2024. 

Corporate treasuries shift to higher BTC cost basis

After the purchase, the Hut8 (HUT) share price did not recover from its recent loss. HUT trades around $24.99, still up from the $10 range in October. HUT is yet another mining stock to gain more than 100% after announcements of BTC purchases. 

The recent purchase was completed at $101,710 per BTC, as most corporate buyers are quickly expanding their cost basis. The latest move by Hut8 increases the overall BTC taken from the market by a list of up to 60 leading holders. 

Those holders accrued a total of 585,487 BTC as of December 16, with more purchases expected in the coming weeks. 

The move by Hut8 and other smaller holders partially offsets the rumors that MicroStrategy may slow down its purchases, which usually happens almost every week. 

For all corporate treasuries, the cost basis of purchases was rising gradually. Those buyers were also among the whales that kept accumulating during the long months of sideways trading. 

Hut8 moved in as BTC briefly dipped under $100,000 before recovering above $104,000 once again. The building of strategic reserves with borrowed funds has been one of the main drivers of BTC expansion. 

In addition to the strategic reserve, Hut8 keeps some of the proceeds from shared mining and its own operations. The mining wallets of Hut8 contain more than 8K coins, with regular rewards from Foundry and the company’s own mining farm. 

Since Hut8 has mined at favorable market prices and with low-cost electricity, even with the latest purchases, the average cost basis per BTC is $24,485. The reserve will be part of the company’s strategy of boosting energy capacity and rebuilding its mining operation equipment. Hut8 has one of the lowest costs per BTC, compared to $58,219 for MicroStrategy, which had a much more aggressive purchasing schedule at market prices. 

Before the recent purchase, Hut8 had a cost basis of $16,088 per BTC on average, based on mining during favorable periods. 

While the reserves have been passive in the last few years, Hut8 plans to tap the BTC value through options trading, pledges, sales, or other appropriate strategies. Sean Glennan, CFO of Hut 8, stated the company was looking for favorable opportunities, where it could deploy some of its BTC reserves to finance investments, equipment expansion, and the improvement of operations. 

Hut8 also plans to expand beyond BTC mining, as its main focus is developing electricity infrastructure for both mining and traditional data centers. The mining corporation combines self-mining with hosting, managed services, as well as data centers for other purposes, again with access to reliable low-cost electricity.

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