HUT to raise $500 MILLION to purchase Bitcoin

Posted: Dec 04, 2024

Hut 8 Corp. (Nasdaq | TSX: HUT) announced three capital markets updates: an ATM Program, a $250 million Stock Repurchase Program, and Coatue's consent to the Stock Repurchase Program
The ATM Program allows the company to offer and sell up to $500 million of its common stock under an "at-the-market" program
The Stock Repurchase Program allows the repurchase of up to 4,683,936 shares of Common Stock representing 5.0% of the current shares outstanding
Coatue Tactical Solutions Lending Holdings AIV 3 LP consented to the launch of the Stock Repurchase Program
The net proceeds from the ATM Program will fund growth initiatives such as acquisitions, digital infrastructure assets, and Bitcoin purchases
The Stock Repurchase Program is part of the company's capital management plan and may involve repurchasing shares through Nasdaq at prevailing market prices.

What do people on Reddit think?

🚨 Reddit sentiment: mixed/negative - The comments reflect a mix of skepticism and concern about the financial strategy and timing, along with some positive notes on changing strategies of Bitcoin miners. However, the overall tone suggests worry about potential negative outcomes. Summarized comments: - Concerns about timing for raising $500 million, with some suggesting it should have been done at all-time highs rather than intermediate lows - Discussion on why big money is buying bonds instead of Bitcoin directly; limitations on buying BTC are mentioned - Bitcoin miners shifting strategies from issuing shares to buying them back, seen as a massive move - Skepticism is expressed, as some believe this will end badly or result in a large number of people holding worthless investments - Some commenters joke or express surprise at the notion of a food brand (Pizza Hut) getting involved in Bitcoin Stock tickers discussed: HUT, MSTR, MARA

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