Canadian bitcoin (BTC) miner Hut 8 Mining Corp. increased its massive BTC reserves in July as the company maintained its long-term “HODL strategy” in the face of market volatility.
The Alberta-based company produced 330 bitcoins in July at an average rate of 10.61 bitcoins per day, bringing its total reserves to 7,736 bitcoins. The company’s monthly production rate is equivalent to 113.01 BTC per exahash disclose Friday.
Trading on the Nasdaq and Toronto Stock Exchange, Hut 8 is one of the largest public holders of Bitcoin, according to to industry data.
As part of its ongoing HODL strategy, Hut 8 is placing all of its self-mined bitcoins in escrow, bucking a growing industry trend of miners selling fractions of their reserves during bear markets. As Cointelegraph reported, Texas-based miner Core Scientific sold 7,202 BTC for an average of $23,000 in June to pay for servers and pay down debt. The company recovered 1,221 bitcoin the following month after increasing its mining output by 10%.
Meanwhile, mining firm Argo Blockchain cut its holdings by 887 BTC in July to secure a loan agreement with Galaxy Digital and fund its operations. Separately, Riot Blockchain cut its bitcoin holdings for the third straight month in June to raise funds for its operations.
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Bitcoin mining is a lucrative business in 2021 as the average revenue per mined BTC is more than Four times higher than last year’s average. As bitcoin prices plummet in 2022, underwater miners are forced to sell into a sliding market environment.
Shares of HUT 8 rose 3.5% to close at $2.38 on Friday. The stock is down nearly 70% so far this year and is down nearly 80% from its peak on Nov. 8, 2021, when bitcoin was trading near $70,000.