Hut 8 to build Bitcoin treasury with $500m raise

Bitcoin miner Hut 8 has launched an in-market and stock buyback program to fund its corporate strategic BTC reserve.

Hut 8’s ATM initiative aims to raise $500 million for its Bitcoin (BTC) treasury and $250 million to fund share buybacks, according to a Dec. 4 press release. Asher Genoot, the firm’s CEO, stated that Hut 8’s decision will allow the miner to weather volatile markets and strengthen its balance sheet with the world’s leading digital asset.

According to Genoot’s statements, net revenues from the ATM program were also allocated to the expansion of Hut 8’s mining infrastructure and data centers.

We believe the capital markets updates announced today send a clear message to shareholders: Our key investors continue to believe in us, and the flexibility provided by the ATM Program and Share Buyback Program strengthens our ability to confidently pursue ambitious growth targets while maintaining relentless growth. Focus on increasing sustainable shareholder returns.

Asher Genoot, Hut 8 CEO

Since MicroStrategy introduced the concept, stock sales and securities issuances are rapidly growing trends among crypto-savvy institutions. MicroStrategy executive chairman Michael Saylor secured loans and raised capital to purchase Bitcoin, encouraging other firms to capitalize on the idea.

Companies in the US and Asia, such as Hut 8 and Metaplanet, have jumped on the bandwagon, growing their reserves of trillion-dollar crypto assets.

More Bitcoin miners have announced strategic BTC reserves in addition to existing holdings created through massive computing facilities.

Marathon Digital Holdings held $3.3 billion worth of BTC after the last upload announced on November 27. The BTC miner offered a $1 billion convertible note sale and spent over $67 million on crypto purchases while keeping $160 million in reserves for additional purchases.

Policymakers and BTC supporters have also encouraged US federal and state governments to create strategic crypto stocks. Even before President Donald Trump fulfills his promise, Satoshi Act Fund founder Dennis Porter claimed that about 10 US states could soon pass laws to create reserves.