Hut 8 to raise up to $500M to buy Bitcoin as a strategic reserve asset

North American Bitcoin mining company Hut 8 has announced a $500 million stock repurchase program, with the proceeds going toward growth initiatives, including buying Bitcoin as a strategic reserve.

Hut 8’s at-the-market (ATM) offering program will enable the company to sell up to $500 million in common stock, with proceeds going toward acquiring or developing power and digital infrastructure, a Bitcoin (BTC $102,399) strategic reserve, and other corporate purposes like capital expenditures and debt repayment. 

“The launch of the ATM Program and Stock Repurchase Program has equipped the business with two powerful tools that we believe bolster our ability to navigate the volatile markets in which we operate,” said CEO of Hut 8 Asher Genoot in the Dec. 4 statement.

The stock repurchase program has been introduced as part of the company’s capital management plan, under which it may repurchase up to 4.68 million shares of common stock representing 5% of the total outstanding stock over the next year. 

“These tools support a robust, integrated capital strategy, reinforcing our proactive approach to treasury management,” Genoot added. 

Hut 8 stock (HUT) dipped to $6.33 in January following a report by a short-seller that rattled investors. However, it has rebounded 326% since then to $27.03 on Dec. 4, according to Google Finance. 

Hut 8 stock price year to date. Source: Google Finance 

This week, the firm filed a motion to dismiss a class-action lawsuit from shareholders, arguing the class action was simply riding on the “short and distort” short-seller report.

The firm is the latest to invest in a Bitcoin reserve strategy. Over the past month, AI education tech firm Genius Group, biopharmaceutical company Hoth Therapeutics, video-sharing platform Rumble, and Canadian wellness firm Jiva Technologies have all announced Bitcoin strategic reserves.