Leading Bitcoin miner Hut 8 announced that it aims to raise $500 million through a sale of common stock. The company will spend its sales revenues on more Bitcoin (BTC) $96,937 It plans to use it to increase its reserves.
Hut 8 Bitcoin Buying Plan
Hut 8 emphasized its commitment to Bitcoin, the world’s leading digital asset, in a press release on Wednesday. The Bitcoin miner has developed an ATM program that will allow it to raise up to $500 million through common stock sales.
“Sales to be made within the scope of the ATM Program will provide the opportunity to raise opportunistic funds for strategic reserve assets such as Bitcoin purchases.”
Net revenues generated under the program may also be directed to working capital, debt payments and other general corporate expenses.
Share Buyback Program
Along with the $500 million ATM program, Hut 8 also announced a $250 million share buyback program. The Bitcoin mining firm stated that the Share Buyback Program is part of its capital management plan.
“Under the share repurchase program, the company plans to repurchase approximately 4,683,936 shares at current market prices over the next 12 months.”
Following the news, Hut 8’s share price rose 1.72% in the premarket to $25.49.
Increase in Institutional BTC Adoption
Hut 8’s Bitcoin acquisition plan also reflects growing interest from other institutional players. For example, MicroStrategy founder Michael Saylor’s firm purchased 15,400 BTC at an average price of $95,976, bringing its total Bitcoin holdings to 402,100 BTC.
Similarly, Metaplanet purchased 124 BTC, bringing its total Bitcoin holdings to 1,142,287 BTC. Brokerage firms are also increasing traditional firms’ access to assets with spot Bitcoin ETF products.
As a result, Hut 8’s effort to increase its strategic BTC reserve appears to be in line with the general trend in the industry. The increasing interest of institutional investors contributes to Bitcoin’s greater inclusion in financial portfolios.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
