Hut 8 to Raise $500 Million to Expand Bitcoin Reserves

Bitcoin mining firm Hut 8 has entered into an agreement to sell common shares at market price, with a total offering of $500 million.

Hut 8 today announced a $500 million ATM program and a $250 million stock repurchase program.

Read the full release here: https://t.co/AbpSre2Hql

— Hut 8 (@Hut8Corp) December 4, 2024

According to a press release, the proceeds will be used to enhance the company’s data center infrastructure and purchase bitcoin as a strategic reserve.

Per Bitcointreasuries, Hut 8 currently holds 9,110 BTC valued at approximately $934.5 million at the time of writing.

Since the beginning of the year, Hut 8’s stock has surged 102.6%, bringing its market cap to $2.53 billion. Bitcoin reserves now account for nearly 37% of the company’s capitalization.

Hut 8 has also initiated a $250 million share buyback program, which received approval from Coatue Management. The investment firm had previously supported Hut 8 through the purchase of convertible bonds.

Strategic Developments

In September, Hut 8 began leasing its GPU resources for AI computations.

Analysts at Bernstein noted that miners diversifying into AI services have seen faster stock growth compared to competitors focused solely on cryptocurrency mining.