Hut 8鈥檚 Strategic Bitcoin Reserve Surpasses $1 Billion in Market Value with Purchase of $100 Million of Bitcoin
Hut 8 Corp. has announced the purchase of approximately 990 Bitcoin for $100 million at an average price of $101,710 per Bitcoin. This strategic acquisition brings their total Bitcoin reserve to 10,096 BTC, valued at over $1 billion as of December 18, 2024, positioning them among the top ten corporate Bitcoin holders globally.
The company's Bitcoin reserve was built through low-cost production and strategic purchases, with a realized average cost of $24,484 per Bitcoin. The purchased Bitcoin will be utilized in an innovative financing model for their planned fleet upgrade. Their mining cost per Bitcoin is expected to decrease to $21,180 following the Q1 2025 fleet upgrade, down from $31,482 in September 2024.
Hut 8 Corp. ha annunciato l'acquisto di circa 990 Bitcoin per 100 milioni di dollari a un prezzo medio di 101.710 dollari per Bitcoin. Questa acquisizione strategica porta il loro totale di riserve Bitcoin a 10.096 BTC, valutati oltre 1 miliardo di dollari al 18 dicembre 2024, posizionandoli tra i primi dieci detentori aziendali di Bitcoin a livello globale.
La riserva di Bitcoin dell'azienda 猫 stata costruita attraverso una produzione a basso costo e acquisti strategici, con un costo medio realizzato di 24.484 dollari per Bitcoin. I Bitcoin acquistati saranno utilizzati in un modello di finanziamento innovativo per l'aggiornamento della loro flotta programmato. Si prevede che il costo di estrazione per Bitcoin scender脿 a 21.180 dollari dopo l'aggiornamento della flotta del primo trimestre del 2025, rispetto ai 31.482 dollari di settembre 2024.
Hut 8 Corp. ha anunciado la compra de aproximadamente 990 Bitcoin por 100 millones de d贸lares a un precio promedio de 101,710 d贸lares por Bitcoin. Esta adquisici贸n estrat茅gica lleva su reserva total de Bitcoin a 10,096 BTC, valorada en m谩s de 1 mil millones de d贸lares al 18 de diciembre de 2024, posicion谩ndolos entre los diez principales tenedores corporativos de Bitcoin a nivel mundial.
La reserva de Bitcoin de la empresa se construy贸 a trav茅s de producci贸n de bajo costo y compras estrat茅gicas, con un costo medio realizado de 24,484 d贸lares por Bitcoin. Los Bitcoin adquiridos se utilizar谩n en un modelo de financiamiento innovador para la actualizaci贸n planeada de su flota. Se espera que el costo de miner铆a por Bitcoin disminuya a 21,180 d贸lares tras la actualizaci贸n de la flota del primer trimestre de 2025, bajando de 31,482 d贸lares en septiembre de 2024.
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須岇偓鞚� 牍勴姼旖旍澑 氤挫湢霟夓潃 鞝�牍勳毄 靸濎偘瓿� 鞝勲灥鞝� 甑Г毳� 韱淀暣 甑稌霅橃棃鞙茧┌, 牍勴姼旖旍澑雼� 鞁ろ槃 韽夑窢 牍勳毄鞚� 24,484 雼煬鞛呺媹雼�. 甑Г頃� 牍勴姼旖旍澑鞚� 瓿勴殟霅� 頂岆 鞐呹犯霠堨澊霌滊ゼ 鞙勴暅 順侅嫚鞝侅澑 旮堨湹 氇嵏鞐� 靷毄霅� 瓴冹瀰雼堧嫟. 2025雲� 1攵勱赴 頂岆 鞐呹犯霠堨澊霌� 鞚错泟 牍勴姼旖旍澑雼� 毂勱荡 牍勳毄鞚� 31,482雼煬鞐愳劀 21,180雼煬搿� 臧愳唽頃� 瓴冹溂搿� 鞓堨儊霅╇媹雼�.
Hut 8 Corp. a annonc茅 l'achat d'environ 990 Bitcoin pour 100 millions de dollars 脿 un prix moyen de 101 710 dollars par Bitcoin. Cette acquisition strat茅gique porte leur r茅serve totale de Bitcoin 脿 10 096 BTC, d'une valeur de plus de 1 milliard de dollars au 18 d茅cembre 2024, les positionnant parmi les dix principaux d茅tenteurs de Bitcoin au niveau des entreprises dans le monde.
La r茅serve de Bitcoin de l'entreprise a 茅t茅 constitu茅e gr芒ce 脿 une production 脿 faible co没t et 脿 des achats strat茅giques, avec un co没t moyen r茅alis茅 de 24 484 dollars par Bitcoin. Les Bitcoin achet茅s seront utilis茅s dans un mod猫le de financement innovant pour la mise 脿 niveau de leur flotte pr茅vue. Le co没t d'extraction par Bitcoin devrait tomber 脿 21 180 dollars apr猫s la mise 脿 niveau de la flotte au premier trimestre 2025, contre 31 482 dollars en septembre 2024.
Hut 8 Corp. hat den Kauf von etwa 990 Bitcoin f眉r 100 Millionen Dollar zu einem durchschnittlichen Preis von 101.710 Dollar pro Bitcoin angek眉ndigt. Diese strategische Akquisition bringt ihre gesamte Bitcoin-Reserve auf 10.096 BTC, die zum 18. Dezember 2024 眉ber 1 Milliarde Dollar wert ist, und positioniert sie unter den zehn gr枚脽ten Unternehmensinhabern von Bitcoin weltweit.
Die Bitcoin-Reserve des Unternehmens wurde durch kosteng眉nstige Produktion und strategische K盲ufe aufgebaut, mit einem realisierten Durchschnittspreis von 24.484 Dollar pro Bitcoin. Die gekauften Bitcoin werden in einem innovativen Finanzierungsmodell f眉r die geplante Flottenaufr眉stung verwendet. Nach der Flottenaufr眉stung im ersten Quartal 2025 wird der Abbaukosten pro Bitcoin voraussichtlich auf 21.180 Dollar sinken, gegen眉ber 31.482 Dollar im September 2024.
- Strategic Bitcoin reserve reaches over $1 billion in value
- Positioned among top 10 global corporate Bitcoin holders
- Low average acquisition cost of $24,484 per Bitcoin
- Expected reduction in mining costs to $21,180 per BTC after fleet upgrade
- Flexible asset strategy allowing for various monetization options
- Large capital expenditure of $100M for recent Bitcoin purchase
- High average purchase price of $101,710 for new Bitcoin acquisition
- Current high mining costs of $31,482 per Bitcoin
Insights
This strategic move by Hut 8 represents a significant shift in corporate treasury management, with the <money>$100 million</money> Bitcoin purchase at an average of <money>$101,710</money> per BTC bringing their total holdings to 10,096 BTC. The company's realized average cost basis of <money>$24,484</money> per Bitcoin demonstrates exceptional capital efficiency, particularly considering current market prices. The most compelling aspect is their innovative approach to using Bitcoin reserves as collateral for fleet upgrades, effectively creating a self-sustaining financial ecosystem.
The projected mining cost reduction to <money>$21,180</money> per BTC after fleet upgrades indicates a <percent>32.7%</percent> improvement from current costs of <money>$31,482</money>. This cost advantage positions Hut 8 favorably against competitors and enhances their ability to accumulate Bitcoin at below-market prices through mining operations.
The implementation of Bitcoin as a treasury asset marks a sophisticated evolution in corporate finance strategy. By maintaining <money>$1 billion</money> in Bitcoin reserves, Hut 8 has created a flexible capital structure that serves multiple purposes: collateral for financing, potential yield generation through options strategies and a hedge against fiat currency depreciation. The flywheel effect they've designed is particularly noteworthy - using Bitcoin holdings to secure financing for mining operations, which in turn produces more Bitcoin at below-market costs, creating a self-reinforcing cycle of asset accumulation.
Positioning as one of the top 10 corporate Bitcoin holders globally significantly enhances Hut 8's market presence and institutional appeal. The timing of this purchase, coupled with their existing mining operations, creates a unique hybrid model that combines organic Bitcoin acquisition through mining with strategic market purchases. This diversified approach to Bitcoin accumulation reduces their average cost basis risk while maintaining exposure to potential upside. The strategy particularly resonates with institutional investors seeking Bitcoin exposure through publicly traded equities, potentially expanding their shareholder base.
Reserve built through low-cost production and strategic at-market purchase
Purchased Bitcoin to support innovative financing model for fleet upgrade
MIAMI, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Hut 8 Corp. (Nasdaq | TSX: HUT) (鈥淗ut 8鈥� or the 鈥淐ompany鈥�), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America鈥檚 largest Bitcoin miners, today announced the purchase of approximately 990 Bitcoin. The aggregate purchase price of the acquired Bitcoin was approximately
Combined with the Bitcoin held prior to this purchase, Hut 8鈥檚 strategic Bitcoin reserve now totals 10,096 Bitcoin with a market value of more than
Figure 1. Fundamentals-driven operating strategy focused on driving significant and scalable cost advantage in building a strategic Bitcoin reserve
| 听 | Produced As of 9/30/2024 | Purchased As of 12/18/2024 | Total | |||
| BTC held in reserve | 听 | 9,106 | 听 | 990 | 听 | 10,096 |
| Realized average cost per BTC held in reserve1 | $ | 16,088 | $ | 101,710 | $ | 24,484 |
| lllustrative cost to mine a BTC with fleet upgrade2 | $ | 21,180 | 听 | 听 | ||
| 听 | ||||||
| Note: (1) Reflects Hut 8鈥檚 cost to mine for produced Bitcoin and cost to purchase for purchased Bitcoin; (2) Reflects Hut 8鈥檚 cost to mine a Bitcoin for the three months ended September 30, 2024 of | ||||||
Hut 8鈥檚 strategic Bitcoin reserve bolsters the Company鈥檚 capital strategy by serving as a flexible asset that can optimize balance sheet performance and fund capital-intensive growth initiatives, including power and digital infrastructure development. Bitcoin held in reserve may be leveraged through option strategies, pledges, sales, or other strategies as appropriate. Decisions to utilize Bitcoin held in reserve will be made on a case-by-case basis, optimizing for return on invested capital and guided by rigorous cost-benefit analysis.
鈥淎 key component of our treasury strategy, the strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,鈥� said Asher Genoot, CEO of Hut 8. 鈥淲e believe deeply in our operating business and that building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure. Additionally, as we scale operations and extend our cost advantage in Bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically at a significant discount to market prices, strengthening the yield of our reserve strategy.鈥�
鈥淥ur decision to establish a strategic Bitcoin reserve is rooted in our drive to deliver superior returns to our shareholders,鈥� said Sean Glennan, CFO of Hut 8. 鈥淲ith 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. Beyond building our reserve with a focus on low-cost production and strategic at-market purchases, we will continue to actively manage and trade around our holdings with the goal of unlocking additional value.听Our flexible approach is designed to ensure that, if compelling opportunities arise within our operating business, we are prepared to strategically deploy our reserve to drive platform expansion and create long-term value.鈥�
Figure 2. Flywheel effect accelerates value creation across capital and operating strategies
About Hut 8
Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp.鈥檚 portfolio comprises fifteen sites: five Bitcoin mining, hosting, and managed services sites in Alberta, New York, and Texas, five cloud and colocation data centers in British Columbia and Ontario, four power generation assets in Ontario, and one non-operational site in Alberta.
Cautionary Note Regarding Forward-Looking Information
This press release includes 鈥渇orward-looking information鈥� and 鈥渇orward-looking statements鈥� within the meaning of applicable securities laws in Canada and the United States, including the United States Private Securities Litigation Reform Act of 1995 (collectively, 鈥渇orward-looking information鈥�). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words 鈥渕ay鈥�, 鈥渨ould鈥�, 鈥渃ould鈥�, 鈥渟hould鈥�, 鈥渨ill鈥�, 鈥渋ntend鈥�, 鈥減lan鈥�, 鈥渁nticipate鈥�, 鈥渁llow鈥�, 鈥渂elieve鈥�, 鈥渆stimate鈥�, 鈥渆xpect鈥�, 鈥減redict鈥�, 鈥渃an鈥�, 鈥渕ight鈥�, 鈥減otential鈥�, 鈥渋s designed to鈥�, 鈥渓ikely鈥� or similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking information may include, but is not limited to, the Company鈥檚 intended use of the purchased Bitcoin, including its intention to optimize for return on invested capital and decision-making guided by rigorous cost-benefit analysis, its focus on driving significant and scalable cost advantage in building a strategic Bitcoin reserve, its expected go-forward cost to mine a Bitcoin (excluding hosted facilities) upon the expected fleet upgrade, its strategic Bitcoin reserve as a flexible asset, the Company鈥檚 flywheel effect to accelerate value creation across the business, the fortification of the Company鈥檚 financial position as it builds its strategic Bitcoin reserve, its ability to grow its Bitcoin holdings at a significant discount to market prices, its treasury management strategy, the Company鈥檚 ability to unlock additional value and its focus on delivering superior returns.
Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by the Company as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. For factors that could cause actual results to differ materially from the forward-looking information in this press release, please see the risks described under the 鈥淩isk Factors鈥� section of the Registration Statement, the Prospectus Supplement, the Company鈥檚 Transition Report on Form 10-K for the transition period from July 1, 2023 to December 31, 2023, filed with the SEC on April 26, 2024, and Hut 8鈥檚 other public disclosure documents, which are available under the Company鈥檚 EDGAR profile at听www.sec.gov and SEDAR+ profile at听www.sedarplus.ca.
Hut 8 Corp. Investor Relations
Sue Ennis
Hut 8 Corp. Media Relations
A photo accompanying this announcement is available at
An overview of Hut 8鈥檚 strategic Bitcoin reserve can be downloaded here:听
FAQ
How many Bitcoin did Hut 8 purchase in December 2024?
What is Hut 8's total Bitcoin holdings after the December 2024 purchase?
What is HUT's average cost per Bitcoin in their reserve?
How much will it cost HUT to mine Bitcoin after their fleet upgrade?
What is the purpose of HUT's strategic Bitcoin reserve?
