What's Going On With Hut 8 Shares Tuesday?

Hut 8 Corp. HUT shares traded higher Tuesday alongside other crypto-related stocks as Bitcoin BTC/USD prices climbed towards $100,000.

The Details: Hut 8 is primarily focused on Bitcoin mining and stands to gain from a rise in Bitcoin, which is currently trading around $98,700, according to data from Benzinga Pro.

It’s worth noting that Hut 8 was outpacing other Bitcoin mining stocks on Tuesday, including Riot Platforms, Inc. RIOT, CleanSpark, Inc. CLSK and MARA Holdings Inc MARA. Riot closed the shortened trading day up about 8%, while MARA Holdings closed up about 5% and CleanSpark closed up about 4%.

Last week, Hut 8 announced the purchase of approximately 990 Bitcoin for about $100 million, equating to roughly $101,710 per coin. This latest purchase brings Hut 8’s total Bitcoin reserves up to 10,096 as of Dec. 18.

“A key component of our treasury strategy, the strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business,” said Asher Genoot, CEO of Hut.

“We believe deeply in our operating business and that building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure. Additionally, as we scale operations and extend our cost advantage in Bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically at a significant discount to market prices, strengthening the yield of our reserve strategy.”

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HUT Price Action: Hut 8 shares closed Tuesday up 12.2% at $24.28, per data from Benzinga Pro.

Image: via Shutterstock.