Wall Street Bitcoin Miner Hut 8 Launches $500M ATM and $250M Stock Repurchase

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 has 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 the 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

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.