Hut 8 plans to raise $500M for Bitcoin acquisitions

Hut 8 Mining Corp. has announced its intention to raise $500 million through common stock sales as part of a strategy to enhance its Bitcoin (CRYPTO:BTC) reserves.

The company aims to utilize the proceeds from these sales to acquire additional Bitcoin (BTC), currently valued at approximately $102,841.

In a press release, Hut 8 highlighted its commitment to Bitcoin, stating that the funds raised will be directed towards strategic reserve assets, including Bitcoin purchases.

“Sales under the ATM program will provide opportunistic fundraising opportunities for strategic reserve assets like Bitcoin purchases,” the company noted.

Additionally, the net proceeds may also be allocated for working capital, debt repayments, and other general corporate expenses.

Alongside the stock sales, Hut 8 has initiated a $250 million share buyback program as part of its capital management strategy.

Under this program, the company plans to repurchase around 4,683,936 shares at current market prices over the next year.

Following this announcement, Hut 8's stock price increased by 1.72% in pre-market trading, reaching $25.49.

Hut 8’s acquisition plan reflects a broader trend of increasing institutional interest in Bitcoin.

For instance, MicroStrategy, led by Michael Saylor, recently acquired 15,400 BTC at an average price of $95,976, bringing its total holdings to 402,100 BTC.

Similarly, Metaplanet has expanded its Bitcoin holdings to 1,142.287 BTC by purchasing an additional 124 BTC.

Brokerage firms are also facilitating access for traditional investors through spot Bitcoin ETF products.

At the time of reporting, the Bitcoin (BTC) price was $103,146.