North American Bitcoin miner Hut 8 will buy hundreds of millions of dollars worth of Bitcoin. It wants to raise a total of $500 million by selling its own shares. The company thus follows the strategy of Michael Saylor’s MicroStrategy.
Hut 8 follows MicroStrategy
Hut 8 thus becomes the next party that appears to be copying MicroStrategy’s timetable. Earlier we saw MARA Holdings, another Bitcoin miner, also start organizing capital rounds in which it offered convertible bonds.
MARA Holdings managed to raise more than 1 billion dollars in the previous round, all of which was invested in Bitcoin.
Now Hut 8 is going to do something similar, but by selling its own shares. The proceeds from that sale don’t just go to Bitcoin. They also want to repay some debts, work on the company’s infrastructure and much more.
“The launch of the ATM Program and Stock Repurchase Program gives the company two powerful tools to tame the volatile markets in which we operate,” said Hut 8 CEO Asher Genoot.
Hut 8’s share skyrockets
The shareholders of Hut 8 apparently appreciate the plan. The Bitcoin miner’s share shot up by 7.86% to the current price of $27.03.
With this increase, Hut 8 has recorded an increase of 157.18% over the past year. This means that the share is doing very well, and the return over that period is even higher than that of Bitcoin.
That may sound unbelievable, but it’s true. One year ago on December 5, Bitcoin stood at $44,000 per coin. At the time of writing, there is a return of 133.28% on the virtual boards for Bitcoin.
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Source: https://newsbit.nl/hut-8-haalt-500-miljoen-op-om-bitcoin-te-kopen-voor-strategische-reserve/
