Hut 8 converted part of its Bitcoin reserve into a large share repurchase, selling about 3,102 BTC across the third quarter and October and directing nearly all of the roughly $250 million in net proceeds to its own stock. The Miami-based computing and energy infrastructure company then expanded the program: its board approved an additional $750 million on November 2, taking the total repurchase authorization to $1 billion. The new authorization is permission, not a commitment to spend the full amount.

Bitcoin funded the completed repurchases

During the quarter, Hut 8 sold approximately 954 BTC for $74.8 million and repurchased 953,802 shares for $74.7 million, an average of $78.32 per share. In October, it sold another 2,148 BTC for $175.4 million and bought 2,384,677 shares for $175.3 million, averaging $73.49. Together, the transactions retired 3,338,479 shares for about $250 million. Canadian rules cited by the company cap purchases at 5% of outstanding shares in any 12-month period, which limits the speed at which the expanded authorization can be used.

Related reporting: Riot Cuts Bitcoin Treasury to Fund Data-Center Expansion

The sales were material but did not empty the treasury. At September 30, Hut 8 reported 16,787 BTC with a carrying value of $1.40 billion, including assets attributable to its consolidated American Bitcoin subsidiary. The October sale happened after that balance-sheet date. Bitcoin sold during the quarter also generated a realized gain of about $39.9 million, while subsequent sales will be reflected in later results.

Headline profit needs accounting context

Third-quarter revenue fell to $71.1 million from $83.5 million a year earlier. Compute revenue, which includes ASIC mining and cloud operations, declined to $68.4 million from $70.0 million. Hut 8 mined 891 BTC, up from 578, but its average revenue per Bitcoin fell to $71,087 from $114,121. The company reported $189.5 million of consolidated net income and $131.1 million attributable to Hut 8 shareholders, but those figures included a $413.8 million gain on digital assets as Bitcoin rose during the quarter. Adjusted EBITDA excluding the digital-asset mark-to-market was $33.0 million, compared with a recast $30.5 million a year earlier.

That distinction matters because the repurchases consumed a liquid reserve while the company's data-center buildout remains capital intensive. Hut 8 said Beacon Point is fully commercialized, advanced 1,300 megawatts of energy capacity to exclusivity and closed a $1.07 billion senior secured revolving credit facility. Management expects major projects to be funded at the project level without parent equity or recourse debt, a plan whose execution is not yet proven. Those steps expand project-level financing capacity, but construction schedules, tenant performance, funding terms and power approvals still determine when planned campuses can produce cash.

A capital-allocation trade-off

The transaction reduces the share count and may concentrate each remaining share's claim on the business, but it also exchanges part of Hut 8's Bitcoin exposure for an equity-market decision. Future results will depend on the price paid for additional repurchases, the pace allowed under Canadian limits, Bitcoin's value and whether new data centers move from contracted plans to operating revenue on schedule. The board can slow or stop purchases, so the $1 billion figure should be treated as a ceiling rather than a forecast.

Sources

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