Hut 8 Corp., a Bitcoin miner based on Wall Street, has announced significant updates regarding its capital market strategies. The company has introduced an “at-the-market” (ATM) equity offering program, initiated a stock repurchase program, and filed a shelf registration statement with the Securities and Exchange Commission (SEC).
The ATM program allows Hut 8 to issue shares of its common stock up to $500 million through sales on the Nasdaq Global Select Market or other approved methods. These funds will be utilized for various growth initiatives, such as acquiring energy assets, developing infrastructure, and purchasing Bitcoin. Additionally, the proceeds may cover general expenses, debt repayment, and other investments to further enhance the company’s operations.
Furthermore, Hut 8 has launched a $250 million stock repurchase program, enabling the buyback of up to 4.68 million shares, constituting 5% of the outstanding stock, over the next year. The repurchases will be executed through Nasdaq at market prices, providing the company with an opportunity to enhance its stock value and optimize its capital structure.
In order to comply with regulatory requirements, the company has secured Coatue Tactical Solutions’ consent for the stock repurchase plan, as mandated under their convertible note agreement. Coatue has waived its right to register the common stock associated with its note. Hut 8 has also filed a Form S-3ASR registration statement with the SEC to facilitate sales under the ATM program and ensure adherence to securities laws in the United States and Canada.
It is important to note that both the ATM and stock repurchase programs are subject to various factors such as market conditions, stock prices, and liquidity. Hut 8 retains the flexibility to adjust or suspend these initiatives as deemed necessary, without prior notice. This strategic approach allows the company to adapt to changing market dynamics and capitalize on emerging opportunities in the rapidly evolving cryptocurrency landscape.
