Hut 8 to Raise $500 Million to Boost Bitcoin Reserves

The mining firm Hut 8 has entered into an agreement to sell common shares at market price, with the offering amounting to $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 the press release, the funds will be used to develop the firm’s data center infrastructure and to purchase bitcoins as a strategic reserve.

Data from BitcoinTreasuries indicates that the company holds 9110 BTC, valued at approximately $934.5 million at the time of writing.

Since the beginning of the year, the company’s stock has risen by 102.6%, with a market value reaching $2.53 billion. Cryptocurrency reserves account for nearly 37% of its capitalization.

Hut 8 has also launched a $250 million stock repurchase program. The company received approval for the financial initiative from Coatue Management, which previously invested in the miner through the purchase of convertible bonds.

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

Analysts at Bernstein estimate that miners with parallel interests in the AI sector are experiencing faster stock growth than those focused solely on cryptocurrency mining.