Amid Miners’ Capitulation, Hut 8 Maintained BTC’s ‘HODL Strategy’ in July

Canadian Bitcoin (BTC) miner Hut 8 Mining Corp. added to 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. Its monthly production rate was equivalent to 113.01 BTC per exahash, the company announced on 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 taken all of its self-mined Bitcoin into custody, bucking the growing industry trend of miners selling off portions of their reserves during the bear market. As Cointelegraph reported, Texas-based miner Core Scientific sold 7,202 BTC in June at an average price of $23,000 to pay servers and settle debts. The company recovered 1,221 BTC the following month after increasing its mining production by 10%.

Meanwhile, mining company Argo Blockchain reduced its holdings by 887 BTC in July to strike a loan deal with Galaxy Digital and fund its business operations. Separately, Riot Blockchain reduced its Bitcoin holdings for a third consecutive month in June to raise capital for its operations.

Related: Antminer S19 XP dropped in a bid to bring crypto miners back to profit

Bitcoin mining was a very lucrative business in 2021, as the average revenue per BTC mined was more than four times the average for the previous year. With Bitcoin prices crashing in 2022, underwater miners were forced to sell in a declining market environment.

Hut 8 (HUT) stock mirrored Bitcoin’s performance over the past year. Source: Trading View.

Shares of HUT 8 rose 3.5% on Friday to settle at $2.38. The stock is down almost 70% since the start of the year and 80% since its peak on November 8, 2021, when Bitcoin traded near $70,000.

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