Canadian Bitcoin (BTC) miner Hut 8 Mining Corp. added its huge BTC reserves in July as the company maintained its long-term “HODL strategy” in the face of market volatility.
The Alberta-based company generated 330 Bitcoin in July at an average production rate of 10.61 BTC per day, bringing its total reserves to 7,736 BTC. The monthly production rate was equivalent to 113.01 BTC per exahash, the company announced 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 has put all of its self-mined Bitcoin in custody, countering the growing trend in the industry of miners selling off parts of their reserves during the bear market. As TSTIME 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 recovered 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 secure a loan deal with Galaxy Digital and fund its business. Separately, Riot Blockchain reduced its Bitcoin holdings for the third consecutive month in June to raise capital for its operations.
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Bitcoin mining was a very lucrative venture in 2021 as the average revenue per BTC mined was more than four times higher than the previous year’s average. With Bitcoin prices plummeting in 2022, underwater miners are forced to sell in a declining market environment.
Shares of HUT 8 rose 3.5% Friday to settle at $2.38. The stock is down nearly 70% since the start of the year and 80% since its peak on November 8, 2021, when Bitcoin traded near $70,000.