Key Points
- Bitcoin miner Hut 8 has initiated an at-the-market and stock repurchase program to fund its corporate BTC reserve.
- The ATM initiative aims to raise $500 million for the company’s Bitcoin treasury and $250 million for stock buybacks.
Bitcoin mining company Hut 8 has launched an at-the-market (ATM) program and a stock repurchase scheme. These steps are aimed at financing the company’s strategic Bitcoin reserve.
Hut 8’s Funding Initiative
The goal of Hut 8’s ATM initiative is to amass $500 million for its Bitcoin treasury. An additional $250 million is intended for financing stock buybacks, as announced in a press release on December 4. Asher Genoot, the CEO of Hut 8, stated that this decision will enable the company to navigate volatile markets and strengthen its balance sheet with Bitcoin, the world’s leading digital asset.
Genoot also mentioned that the net proceeds from the ATM program will be allocated towards expanding Hut 8’s mining infrastructure and data centers.
Stock Sales and Securities in Crypto
Stock sales and issuing securities have become increasingly popular trends among crypto-savvy institutions since MicroStrategy introduced the concept. Michael Saylor, the executive chairman of MicroStrategy, secured loans and raised capital to buy Bitcoin, inspiring other firms to adopt the same strategy.
Companies in the U.S. and Asia, such as Hut 8 and Metaplanet, have followed suit, increasing their reserves in the trillion-dollar crypto asset.
Numerous Bitcoin miners have also announced strategic Bitcoin reserves, adding to existing holdings created through substantial computing facilities.
Marathon Digital Holdings had $3.3 billion in Bitcoin following its most recent top-up disclosed on November 27. The Bitcoin miner conducted a $1 billion convertible note sale and spent over $67 million on crypto purchases, while keeping $160 million in reserve for future acquisitions.
Government policymakers and Bitcoin advocates have also urged U.S. federal and state governments to establish strategic crypto reserves. Dennis Porter, the founder of the Satoshi Act Fund, suggested that approximately 10 U.S. states could soon pass laws to establish reserves, even before any potential action by former President Donald Trump.
