Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Hut 8 to deploy bitcoin reserves in new treasury strategy

Hut 8 to deploy bitcoin reserves in new treasury strategy

BlockworksBlockworks2024/02/27 23:22
By:Blockworks

Hut 8 also announced it broke ground on a Texas mining site

Hut 8’s new treasury strategy is set to let the company use its bitcoin reserves for growth initiatives.

“Bitcoin held in reserve may be deployed through direct sales, option strategies or other approaches,” Hut 8 said in a press release

“Focusing on operations while maintaining a strong balance sheet today will enable us to focus heavily on evaluating both organic and inorganic growth opportunities post-halving as distressed assets come to market at favorable valuations. As we evaluate these opportunities, we will determine on a case-by-case basis whether it is most accretive to fund them through direct bitcoin sales, option strategies or other approaches,” CEO Asher Genoot said in an email to Blockworks.

The mining company plans to utilize its new strategy for strategic initiatives, which could include upping its operating scale. 

The announcement comes a little over a month before the fourth bitcoin halving, which will drop mining rewards from 6.25 bitcoin ( BTC ) down to 3.125 BTC per block.

Read more: The next bitcoin halving is coming. Here’s what you need to know

“As we head into the halving , we anticipate that distressed assets will become available at favorable valuations and create opportunities for further growth. A core principle of our new strategy is to deploy capital thoughtfully and strategically to maintain a strong balance sheet and position ourselves to evaluate these opportunities as they arise,” Genoot said .

Genoot was announced as CEO earlier this month following a “merger of equals” with US Bitcoin Corp back in November. 

Earlier this month, he told Blockworks that his goal is “to invest money to drive shareholder return and shareholder value creation.”

Read more: How the halving could impact bitcoin’s price

The mining company also said that the treasury strategy “to fund capital expenditures” at its newest site in Culberson County, TX. A press release says the company expects to bring mining online at the site in the second quarter of this year.

“The Culberson County site creates the optionality for the Company to expand its self-mining fleet or to transition existing self-mining activity from Granbury, [TX] and Kearney, [NE] to the site,” Hut 8 said.

It also expects the cost to mine bitcoin will be 30% lower than at its Granbury, TE and Kearney, NE sites. Earlier this month, Marathon Digital announced that it planned to take over operations from Hut 8. 

Marathon said, at the time, that it would be able to “fully recognize the operational and economic benefits of owning these assets” by removing Hut 8.

Updated Feb. 27, 2024 at 1:48 pm ET: Added statement from Hut 8 CEO Asher Genoot.

Don’t miss the next big story – join our  free daily newsletter .

Tags
  • BTC
  • Hut 8
  • Mining
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Chinese Analyst Assesses Ethereum’s Status, Says “Whales Have Run Out of Purchasing Power” – Here’s What He Expects

Chinese cryptocurrency analyst phenomenon Murphy evaluated the latest status of Ethereum in his statement. Here are the details.

Bitcoinsistemi2025/03/16 16:00

Skipped Bitcoin Cash? Qubetics ($TICS) Could Be Your Redemption Ticket – Top Cryptos for Significant Returns

The crypto market has been on fire lately. With the spotlight shifting to new and innovative blockchain projects, everyone’s eyes are on which cryptos will make waves this year.Bitcoin Cash: A Missed Opportunity for Significant ReturnsQubetics: Revolutionizing Digital Finance with Real-World Asset TokenizationConclusion: Time to Act on Qubetics

Coinomedia2025/03/16 14:33

BTC Short Position by ETH Whale Nears $332M

A crypto whale boosts their BTC short position to $332M, facing losses and potential short squeeze risk.Whale Boosts BTC Short Position Amid Market VolatilityRisk of Liquidation LoomsStrategic Buy Orders Placed

Coinomedia2025/03/16 14:33

Pakistan Launches Crypto Council Led by Finance Minister

Pakistan forms Crypto Council to boost blockchain and crypto adoption, chaired by Finance Minister Muhammad Aurangzeb.Pakistan Takes a Bold Step Toward Crypto AdoptionFinance Minister to Lead the InitiativeFocus on Innovation and Financial Inclusion

Coinomedia2025/03/16 14:33