The company announced on December 19 that it had purchased 990 Bitcoin (BTC) at an average price of $101,710, aligning with its strategy of combining low-cost Bitcoin production with opportunistic market purchases to establish BTC as a reserve asset.

Hut 8‘s expansion of its BTC reserves highlights the increasing interest from institutional investors in Bitcoin as a strategic asset in financial portfolios. This trend gains momentum as the United States prepares for a more crypto-friendly administration under Donald Trump.

With this purchase, Hut 8 has brought its total BTC reserves to 10,096 BTC, with an average acquisition cost of $24,484.

Strategic Reserve Management

Hut 8 CEO Asher Genoot stated that the company’s strategic BTC reserve is a vital component of its treasury strategy and aligns with its operational and capital objectives. Genoot explained, “As we scale operations and extend our cost advantage in Bitcoin production, we expect to grow these reserves organically at prices significantly below market rates.”

The company aims to raise a total of $500 million to purchase BTC as a strategic reserve asset, supported by a recent $250 million stock repurchase and sale program.

Hut 8 Class-Action Lawsuit

On December 2, the company filed a motion to dismiss a class-action lawsuit initiated by its shareholders. The lawsuit allegedly stems from a short-seller report by J Capital Research, which Hut 8 claims was part of a campaign to sink its stock for financial gain.

The lawsuit arose after J Capital Research accused Hut 8 of overstating the profitability of its acquisition of United States Bitcoin Corp. and concealing operational issues at a Texas facility. Hut 8 has denied these allegations.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Hut 8 Surpasses $1 Billion in Bitcoin Reserves appeared first on Coin Engineer.