Canadian Hut 8 Mining Corp added Bitcoin (BTC) to its massive Bitcoin reserves in July, as the company maintained its long-term “HODL strategy” in the face of market volatility.
The Alberta-based company generated 330 bitcoins in July at an average production rate of 10.61 BTC per day, bringing its total reserves to 7,736 BTC. Its monthly production rate was equivalent to 113.01 BTC per exhash, the company revealed on Friday.
Hut 8, which is traded on the Nasdaq and Toronto exchanges, is one of the largest public holders of Bitcoin, according to industry data.
As part of an ongoing HODL strategy, Hut 8 has deposited all of its self-mining bitcoins into custody, breaking with a growing industrial trend of miners selling portions of their reserves during a bear market. As Cointelegraph reported, Texas-based Core Scientific sold 7,202 BTC in June at an average price of $23,000 to pay for servers and settle debts. The company recovered 1,221 BTC the following month after increasing its mining production by 10%.
Meanwhile, Argo Blockchain miner reduced its holdings by 887 BTC in July to settle a loan agreement with Galaxy Digital and to fund its trading operations. Separately, Riot Blockchain reduced its Bitcoin holdings for the third consecutive month in June to raise capital for its operations.
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Bitcoin mining was a very profitable business in 2021, with the average revenue per BTC mined being more than four times the average of the previous year. With Bitcoin prices dropping in 2022, underwater miners are forced to sell in a declining market environment.
Hut 8 (HUT) stock reflects Bitcoin’s performance over the past year. Source: TradingView.
HUT 8 shares rose 3.5% on Friday to settle at $2.38. The stock is down nearly 70% so far and 80% from its peak on November 8, 2021, when Bitcoin was trading near $70,000.
