Canadian Bitcoin (BTC) miner Hut 8 Mining Corp. added to its massive BTC reserves in July as the company stuck to its long-term “HODL strategy” amid market volatility.
The Alberta-based company generated 330 Bitcoin at an average production rate of 10.61 BTC per day in July, bringing its total reserves to 7,736 BTC. The monthly production rate was equivalent to 113.01 BTC per exahash, the company announced on Friday.
Hut 8, which trades on the Nasdaq and Toronto exchanges, is one of the largest public holders of Bitcoin, according to industry data.
As part of its ongoing HODL strategy, Hut 8 placed all of its home-mined bitcoin in custody, bucking a growing industry trend of miners selling portions of their reserves during bear markets. As Cointelegraph reported, Texas miner Core Scientific sold 7,202 BTC at an average price of $23,000 in June to pay servers and pay off debt. The company generated 1,221 BTC the following month after increasing its mining output by 10%.
Meanwhile, mining company Argo Blockchain reduced its holdings by 887 BTC in July to clear a loan deal with Galaxy Digital to fund its business. Separately, in June, Riot Blockchain reduced its Bitcoin holdings for the third straight month to raise capital for its operations.
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Bitcoin mining has been a hugely lucrative business in 2021 as the average revenue per BTC mined was more than four times the previous year’s average. With Bitcoin prices plummeting in 2022, underwater miners were forced to sell in a bearish market environment.
Hut 8 (HUT) stock has mirrored Bitcoin’s performance over the past year. Source: TradingView.
Shares of HUT 8 were up 3.5% on Friday to trade at $2.38. The stock is down nearly 70% year-to-date and 80% from its peak on Nov. 8, 2021, when Bitcoin was trading near $70,000.
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