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Wall Street Bitcoin miner Hut 8 Corp. has revealed key
capital market updates. The company has launched an “at-the-market” (ATM)
equity offering program, a stock repurchase program, and filed a shelf
registration statement with the SEC.
Hut 8 Introduces Stock Repurchase Program
The ATM program allows Hut 8 to issue shares of its common
stock worth up to $500 million through sales on the Nasdaq Global Select Market
or other approved methods.
Proceeds will fund growth initiatives, such as
acquiring energy assets, developing infrastructure, and purchasing Bitcoin.
Funds may also cover general expenses, debt repayment, and other investments.
Hut 8’s $250 million stock repurchase program enables the
buyback of up to 4.68 million shares, or 5% of the outstanding stock, over the
next year. Repurchases will occur via Nasdaq at market prices.
“The launch of the ATM Program and Stock Repurchase Program
have equipped the business with two powerful tools that we believe bolster our
ability to navigate the volatile markets in which we operate,” said Asher
Genoot, CEO of Hut 8.
SEC Registration Filed for Compliance
The company secured Coatue Tactical Solutions’ consent for
the stock repurchase plan, as required under their convertible note agreement.
Coatue waived its right to register the common stock linked to its note.
Hut 8 has filed a Form S-3ASR registration statement with
the SEC, enabling sales under the ATM program and ensuring compliance with
securities laws in the United States and Canada.
Both programs depend on market conditions, stock prices, and
liquidity. Hut 8 retains flexibility to adjust or suspend these initiatives
without notice.
🟢Publicly traded @Hut8Corp to raise up to $500 million and buy #Bitcoin $BTC as a strategic reserve asset. pic.twitter.com/RPoETu2lyy
— Blockviews (@blockviews) December 4, 2024
Bitcoin Miners Hut 8 and Bitfarms Face Challenges in Q3 2024
In Q3 2024, Hut
8 Corp. and Bitfarms Ltd took different approaches in response to market
challenges, leading to contrasting results. Both companies demonstrated
resilience post-halving but did not achieve profitability, despite increased
revenues, as reported by Finance
Magnates.
Hut 8 generated $43.7 million in revenue and a net income of
$0.9 million, benefiting from operational efficiency and diversification into
AI and high-performance computing.
Meanwhile, Bitfarms recorded $45 million in revenue but
incurred a net loss of $37 million, as its expansion and fleet upgrades
increased operational costs, raising the production cost per Bitcoin to $52,400
in Q3 from $47,300 in Q2. However, Bitfarms experienced operational growth,
increasing its hashrate to 11.9 EH/s from 10.4 EH/s in Q2.
This article was written by Tareq Sikder at www.financemagnates.com.
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