The Canadian Bitcoin Mining Company, Hut 8, Continues to Accumulate BTC
Hut 8, a Canadian Bitcoin mining company, is continuing to increase its self-mined Bitcoin reserves despite an ongoing merger deal with US Bitcoin (USBTC), an industrial cryptocurrency miner. In September 2023, Hut 8 mined 111 Bitcoin, bringing its self-mined BTC reserves to a total of 9,366 Bitcoin.
This amount is an 8% increase from the previous month but still significantly lower than the 147 BTC mined in May 2023. Over the past year, Hut 8 has experienced a significant drop in mining pace, with monthly mining volumes decreasing by nearly 60% compared to September 2022.
Hut 8’s HODL Strategy
Despite the decline in monthly-mined Bitcoin, Hut 8 has remained committed to its HODL strategy. The company has not sold any Bitcoin during the month and owns one of the largest self-mined BTC reserves among publicly traded firms. Out of the total balance of 9,366 Bitcoin in reserve as of September 30, 7,269 were unencumbered.
Long-Term HODL Strategy
Hut 8’s BTC reserve expansion aligns with its long-term HODL strategy. Unlike other crypto miners who have been forced to sell their mined Bitcoin due to tough market conditions, Hut 8 has steadily increased its Bitcoin holdings. As of September 2022, the company had approximately 8,000 BTC in reserves.
Merger Deal and Approval
Hut 8 also mentioned the progress of its merger deal with USBTC. The transaction was announced in February 2023 and is set to create a new Bitcoin mining business called Hut 8 Corp or “New Hut.” In September 2023, the Supreme Court of British Columbia granted final approval for the merger deal. This development allows Hut 8 to continue advancing towards the creation of “New Hut,” which will have highly diversified fiat revenue streams.
Hot Take: Hut 8’s Steady Accumulation of BTC
Hut 8, a Canadian Bitcoin mining company, is defying the trend of selling mined Bitcoin and instead continues to accumulate its reserves. Despite a decline in monthly-mined Bitcoin, Hut 8 remains committed to its HODL strategy, resulting in one of the largest self-mined BTC reserves among publicly traded firms. The ongoing merger deal with USBTC is progressing well, as evidenced by the recent approval from the Canadian court. This positions Hut 8 to create a new Bitcoin mining business called “New Hut” with highly diversified fiat revenue streams. As the crypto industry faces market challenges, Hut 8’s steady accumulation of BTC showcases their confidence in the long-term value of Bitcoin.
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