Hut 8 plans a $500 million stock offering to fund Bitcoin acquisitions, infrastructure development, and debt repayment. Proceeds will support its strategic Bitcoin reserve and corporate growth initiatives.
Hut 8, a Bitcoin mining company based in North America, has announced a $500 million stock repurchase program. The proceeds of the program will be allocated to development initiatives, such as the acquisition of Bitcoin as a strategic reserve.
Hut 8’s at-the-market (ATM) offering program will allow the company to sell up to $500 million in common stock.
Bitcoin Reserve Plan
The proceeds will be channeled toward the acquisition or development of power and digital infrastructure, a Bitcoin strategic reserve, and other corporate purposes, such as debt repayment and capital expenditures.
“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 company has implemented the stock repurchase program as part of its capital management strategy. This program allows the company to acquire up to 4.68 million shares of common stock, which accounts for 5% of the total outstanding stock, within the next year.
“These tools support a robust, integrated capital strategy, reinforcing our proactive approach to treasury management,” Genoot added.
In January, Hut 8 stock (HUT) experienced a decline to $6.33 as a result of a report by a short seller that caused investors to become alarmed. Nevertheless, it has since rebounded by 326% to $27.03 on Dec. 4, as reported by Google Finance.
The firm filed a motion to dismiss a class-action lawsuit from shareholders this week, contending that the class action was merely relying on the “short and distort” short-seller report.
The organization is the most recent to implement a Bitcoin reserve strategy. In the past month, the following companies have disclosed their strategic reserves in Bitcoin: the Canadian wellness firm Jiva Technologies, the biopharmaceutical company Hoth Therapeutics, the AI education tech firm Genius Group, and the video-sharing platform Rumble.
