May 28, 2024


Canadian Bitcoin (BTC) mining Hut 8 Mining Corp. added to its massive BTC holdings in July as the company maintained its long-term “HODL strategy” in the face of market volatility.

The Alberta-based company produced 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 exahash, the company said show up Friday.

Hut 8, which trades on the Nasdaq and Toronto stock exchanges, is one of the largest public holders of Bitcoin, according in industry data.

As part of its ongoing HODL strategy, Hut 8 has deposited all of its self-mined Bitcoin into escrow, bucking the growing industry trend of miners selling portions of their holdings during bear markets. As Cointelegraph reported, Texas miner Core Scientific sold 7,202 BTC in June at an average price of $23,000 to pay for servers and settle debts. The company acquired 1,221 BTC the following month after increasing its mining output by 10%.

Meanwhile, miner Argo Blockchain reduced its holdings by 887 BTC in July to settle a loan agreement with Galaxy Digital and finance its business. Separately, Riot Blockchain limited Bitcoin holdings for the third consecutive month in June to raise funds for its operations.

Related: Antminer S19 XP crashed in an attempt to bring crypto miners back to profit

Bitcoin mining was a highly profitable business in 2021 as the average revenue per BTC mined was more than four times higher than the previous year’s average. With Bitcoin prices falling in 2022, underwater miners have been forced to sell in a bearish market environment.

Hut 8 (HUT) stock mirrors Bitcoin’s performance over the past year. Source: TradingView.

Shares of HUT 8 rallied 3.5% on Friday to $2.38. The stock is down nearly 70% year-to-date and 80% since its peak on November 8, 2021, when Bitcoin was trading near $70,000.