Hut 8, a Bitcoin mining company, has added 990 Bitcoin to its reserves, spending $100 million to increase its total holdings to 10,096 BTC. 

The reserve, now valued at over $1 billion, places Hut 8 among the largest corporate Bitcoin (BTC) holders globally.

The company purchased the coins at an average price of $101,710, significantly higher than its cumulative acquisition cost of $24,484 per Bitcoin. Hut 8 credits its historically lower average cost to efficient mining operations and strategic acquisitions, as outlined in its press release.

This move follows examples set by crypto-focused businesses like Microstrategy and Travala, which have implemented Bitcoin reserves as part of their growth strategies.

Bitcoin funds will support mining equipment

The newly acquired Bitcoin will support an innovative financing model for upgrading its mining fleet. Hut 8 plans to enhance its mining operations by upgrading 111 MW of self-mining capacity.

The upgrade is expected to boost its hashrate by 66% to 9.3 EH/s by early 2025 while improving efficiency by reducing energy consumption. 

CEO Asher Genoot stated that the reserve fortifies Hut 8’s financial position as it expands into power and digital infrastructure. 

“The strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,” said Genoot.

Hut 8 launched an at-the-market offering and stock repurchase program earlier this month to fund its Bitcoin treasury and corporate strategy. The company aimed to raise $500 million for its BTC reserves and $250 million for stock buybacks to strengthen its position during market volatility.