Hut 8, a leading Bitcoin miner, has announced intentions to raise $500 million from the sales of common stock. The firm plans to use the sales proceeds to buy more Bitcoin (BTC), further boosting its reserve. The Hut 8 Bitcoin Acquisition Plan In a Wednesday’s press release , Hut 8 gave the announcement, emphasizing its commitment to Bitcoin, the world’s leading digital asset. The Bitcoin miner has developed an ATM program that will allow for the sale of up to $500 million in common stock. The ATM program facilitates opportunistic fundraising for growth efforts like Bitcoin purchases as a strategic reserve asset. As noted in the release, Sales under the ATM Program will be made under a prospectus supplement dated December 4, 2024. The timing of the Bitcoin purchase is strategic, given the cryptocurrency’s ongoing bullish momentum. Besides buying Bitcoin, the net proceeds could also go into working capital, repayment of debts, and other general corporate expenses. In addition to the $500 million ATM program, Hut 8 announced a $250 million stock repurchase program. The Bitcoin mining firm noted that introducing the Stock Repurchase Program is part of its capital management plan. Under the share buyback program, the company may repurchase about 4,683,936 (5% of outstanding shares) over the next 12 months. Overall, it intends that investors use Nasdaq’s facilities for any repurchase at current market prices that align with applicable securities laws. Following the news, the Hut 8 share price jumped 1.72% in the Pre-market to $25.49. Growing Institutional BTC Adoption Meanwhile, Hut 8’s Bitcoin acquisition plan aligns with rising interest from other institutional players. For instance, Michael Saylor’s business intelligence and software firm, MicroStrategy recently purchased 15,400 BTC for $1.5 billion at an average price of $95,976 per coin. The latest purchase has pushed the firm’s holdings to 402,100 BTC, which accounts for over 1.2% of the coin’s total supply. In a similar move, Metaplanet acquired 124 BTC , valued at 1.75 billion Japanese Yen, on November 19. This acquisition pushed Metaplanet’s total Bitcoin holdings to 1,142.287 BTC, acquired for about 11.372 billion Yen. Also, the average acquisition cost is 9,955,874 Yen per BTC. Besides the direct purchase of the coin on exchanges, spot Bitcoin ETF products have also helped many traditional firms gain exposure to the asset. The post Bitcoin Miner Hut 8 To Raise $500M For Strategic BTC Reserve appeared first on CoinGape .
