Hut 8 Corp. bought 990 Bitcoin for $100 million, making its total Bitcoin holdings worth over $1 billion. Even though it’s facing a lawsuit from J Capital Research, which claims the company overstated its Bitcoin deals, Hut 8 believes its Bitcoin strategy will help the company grow and bring good returns to its investors.
Hut 8 Corp., one of North America’s largest Bitcoin mining companies, became one of the top Bitcoin holders worldwide. With its latest purchase of 990 Bitcoin for $100 million, the company now holds over 10,096 Bitcoin, valued at over $1 billion with an average cost of $24,484 per Bitcoin.
The firm’s management believes that its approach will strengthen its financial position, enhance scalability, and provide a competitive edge. By combining the Bitcoin reserve with cost-effective production and strategic purchases, it expects to generate superior returns for its shareholders.
Hut 8 has a clear Bitcoin vision
According to Hut 8’s CEO, Asher Genoot, “A 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.”
Sean Glennan, the company’s CFO also chimed in. “Our decision to establish a strategic Bitcoin reserve is rooted in our drive to deliver superior returns to our shareholders.”
He emphasized the company’s commitment to Bitcoin as a strategic reserve asset. The company’s approach aligns with its broader capital and operational strategies.
According to Genoot, expanding Hut 8’s Bitcoin holdings is not only about current profitability but also about positioning it for long-term growth. He highlights that as the company scales its mining operations and maintains its cost advantage, it can grow its Bitcoin reserves at a significant discount to market prices.
This approach reflects a growing trend among institutions and corporations to adopt Bitcoin as a reserve asset. With a limited supply and increasing institutional adoption, Bitcoin is increasingly becoming a key component in financial portfolios.
Legal troubles persist
Hut 8’s recent acquisitions and plans to raise $500 million for future Bitcoin purchases are signals of its confidence in the cryptocurrency’s potential.
Despite its achievements, On December 2, Hut 8 filed a motion to dismiss a class-action lawsuit from its shareholders, arguing that the case was initiated by short-seller J Capital Research as part of a campaign to lower the company’s stock price for its own financial gain.
The lawsuit came from a report by J Capital in January, which accused the Bitcoin mining company of exaggerating the benefits of buying United States Bitcoin Corp. and hiding problems at a Texas facility.
Hut 8 said the lawsuit was just an effort by J Capital to make money by lowering the company’s stock price, hurting regular shareholders in the process.
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