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Hut 8's Strategic Bitcoin Reserve Surpasses $1 Billion in Market Value with Purchase of $100 Million of Bitcoin
HUTHut 8 Mining p(HUT) GlobeNewswire News Room·2024-12-19 11:30

Core Viewpoint - Hut 8 Corp. has strategically increased its Bitcoin reserve by purchasing approximately 990 Bitcoin for around 100million,bringingitstotalreserveto10,096Bitcoinvaluedatover100 million, bringing its total reserve to 10,096 Bitcoin valued at over 1 billion, positioning it among the top ten corporate Bitcoin holders globally [1][2]. Group 1: Bitcoin Purchase and Reserve - The recent purchase of 990 Bitcoin was made at an average price of approximately 101,710perBitcoin,contributingtoatotalreserveof10,096Bitcoin[1][2].−ThetotalBitcoinreserveconsistsof9,106Bitcoinproducedatarealizedaveragecostof101,710 per Bitcoin, contributing to a total reserve of 10,096 Bitcoin [1][2]. - The total Bitcoin reserve consists of 9,106 Bitcoin produced at a realized average cost of 16,088 per Bitcoin and the newly purchased Bitcoin, resulting in an overall average cost of 24,484perBitcoin[2][3].−Thestrategicreserveisexpectedtosupportaninnovativefinancingmodelforthecompany′sfleetupgrade[1][2].Group2:FinancialStrategyandValueCreation−Hut8′sBitcoinreserveservesasaflexibleassetthatcanoptimizebalancesheetperformanceandfundcapital−intensivegrowthinitiatives,includingpoweranddigitalinfrastructuredevelopment[4].−ThecompanyaimstoleverageitsBitcoinholdingsthroughvariousstrategiessuchasoptions,pledges,andsales,optimizingforreturnoninvestedcapital[4][6].−ThestrategicreserveisakeycomponentofHut8′streasurystrategy,designedtogeneraterisk−adjustedreturnsthatoutperformidlecash[5][6].Group3:OperationalInsights−ThecompanyanticipatesthatscalingoperationsandextendingitscostadvantageinBitcoinproductionwillenableorganicgrowthofitsBitcoinholdingsatasignificantdiscounttomarketprices[5].−Hut8′soperatingstrategyfocusesondrivingsignificantandscalablecostadvantagesinbuildingitsstrategicBitcoinreserve[3][6].−TheexpectedcosttomineaBitcoinpost−fleetupgradeisprojectedtobe24,484 per Bitcoin [2][3]. - The strategic reserve is expected to support an innovative financing model for the company's fleet upgrade [1][2]. Group 2: Financial Strategy and Value Creation - Hut 8's Bitcoin reserve serves as a flexible asset that can optimize balance sheet performance and fund capital-intensive growth initiatives, including power and digital infrastructure development [4]. - The company aims to leverage its Bitcoin holdings through various strategies such as options, pledges, and sales, optimizing for return on invested capital [4][6]. - The strategic reserve is a key component of Hut 8's treasury strategy, designed to generate risk-adjusted returns that outperform idle cash [5][6]. Group 3: Operational Insights - The company anticipates that scaling operations and extending its cost advantage in Bitcoin production will enable organic growth of its Bitcoin holdings at a significant discount to market prices [5]. - Hut 8's operating strategy focuses on driving significant and scalable cost advantages in building its strategic Bitcoin reserve [3][6]. - The expected cost to mine a Bitcoin post-fleet upgrade is projected to be 21,180, reflecting the impact of increased nameplate hashrate from new miners [3].