North American Bitcoin mining company Hut 8 announced a $250 million stock repurchase along with a share sale program, with the proceeds going toward growth initiatives, including buying Bitcoin as a strategic reserve.
Hut 8’s at-the-market (ATM) offering program will enable the company to sell up to $500 million in common stock, with proceeds used for acquiring or developing power and digital infrastructure, a Bitcoin (BTC) strategic reserve and other corporate purposes including capital expenditures and debt repayment.
“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,” Hut 8 CEO Asher Genoot said in a Dec. 4 statement.
The stock repurchase program was introduced as part of the company’s capital management plan, under which it may repurchase up to 4.68 million shares of common stock representing 5% of the total outstanding stock over the next year.
“These tools support a robust, integrated capital strategy, reinforcing our proactive approach to treasury management,” Genoot added.
Related: Hut 8 tips 66% hashrate boost after deal to buy 31K Bitcoin miners
Hut 8 stock dipped to $6.33 in January following a report by a short-seller that rattled investors. It has rebounded 326% since then to $27.03 on Dec. 4, according to Google Finance.
Hut 8 stock price year to date. Source: Google Finance
This week, the firm filed a motion to dismiss a class-action lawsuit from shareholders, arguing the class action was riding on a “short and distort” report by a potential short-seller.
The firm is the latest to invest in a Bitcoin reserve strategy. Over the past month, AI education tech firm Genius Group, biopharmaceutical company Hoth Therapeutics, video-sharing platform Rumble and Canadian wellness firm Jiva Technologies have all announced Bitcoin strategic reserves.
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