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The largest North American Bitcoin (BTC) mining company Hut 8 has continued to increase its BTC holdings with the acquisition of $100 million. This latest transaction pushed the company’s total reserves to over 10,096 BTC, which is worth over $1 billion at current market rates.
Hut 8 Bitcoin Reserves Top $1 Billion
The Miami-headquartered cryptocurrency mining company continues to expand its Bitcoin reserves, undeterred by the recent surge in BTC prices. In its latest announcement, the Hut 8 it was revealed the purchase of approximately 990 BTC for $100 million, with an estimated value of $101,710 per Bitcoin.
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This acquisition pushed Hut 8’s BTC total to over $1 billion, with coins acquired at an estimated value of $24,485 per Bitcoin. The move reflects the company’s strategy to combine low-cost BTC production with what it views as strategic market buying to increase returns and bolster its reserves.
Notably, Hut 8’s recent purchase puts it among the 10 largest Bitcoin owners worldwide. MicroStrategy remains the leader in this list, holding more than 250,000 BTC on its balance sheet. Commenting, Asher Genoot, CEO, Hut 8, said:
We strongly believe in our active business and that building a strategic Bitcoin repository will strengthen our financial position as we pursue large-scale growth efforts across energy and digital infrastructure. In addition, as we measure performance and increase our cost advantage in Bitcoin production, we expect that the flywheel effect will enable us to increase our assets naturally at a significant discount to market prices, strengthening the yield of our storage strategy.
Echoing these sentiments, Hut 8 CFO, Sean Glennan explained that making BTC a reserve asset was a key element of the company’s strategy to deliver “superior returns” to shareholders through strategic capital management. He added that the company is open to using its BTC storage to support business goals, such as upgrading its mining fleet.
Earlier this month, Hut 8 revealed a massive $750 million plan intended for general business purposes, debt settlement, and bolstering its Bitcoin reserves. Year to date, Hut 8 stock is up more than 102%, trading at $27.11 at the time of writing.
4 Mining Firms Among Top 10 BTC Companies
Although companies like MicroStrategyTesla, Block, and Coinbase are well known among the top Bitcoin owners of companies, four Bitcoin mining firms are also on this prestigious list, namely Marathon Digital Holdings, Hut 8, Riot Blockchain, and CleanSpark.
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Last year, Riot Blockchain report significant increase in its 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 purchased another 703 BTC to increase its total reserves to 34,794 BTC. This move is in line with that of Marathon’s CEO statement that institutions are “waiting to buy” Bitcoin.
In October, CleanSpark CEO Zach Bradford predicted that BTC may reach almost $200,000 in the next 18 months. At press time, BTC is trading at $100,543, down 3.1% in the last 24 hours.
Featured image from Unsplash, Charts from Yahoo! Finance and Tradingview.com
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