Amid miner capitulation, Hut 8 maintained BTC ‘HODL strategy’ in July

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Canadian bitcoin (BTC) miner Hut8 Mining Corp increased its large BTC reserves in July, as the firm maintained its long-term “HODL strategy” in the face of market volatility.

The Alberta-based company generated 330 bitcoins in July at an average production rate of 10.61 BTC per day, bringing its total reserves to 7,736 BTC. The company disclosed on Friday that its monthly production rate was equivalent to 113.01 BTC per exhash.

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According to industry data, Hut 8, which trades on the Nasdaq and Toronto stock exchanges, is one of the largest public holders of bitcoin.

As part of its ongoing HODL strategy, Hut8 has put all of its self-mining bitcoins in custody, aiding the growing industry tendency of miners to sell off part of their reserves during bear markets. As Cointelegraph reported, Texas miner Core Scientific sold 7,202 BTC in June for an average price of $23,000 to pay for servers and settle debt. The company recovered 1,221 BTC the following month after increasing its mining output by 10%.

Meanwhile, mining conglomerate Argo Blockchain reduced its stake to 887 BTC in July to settle a loan agreement with Galaxy Digital and fund its business. Separately, Riot Blockchain trimmed its bitcoin holdings for the third month in a row in June to raise capital for its operations.

related: Antminer S19 XP dropped in an attempt to turn crypto miners back into profit

Bitcoin mining was a highly lucrative business in 2021, as the average revenue per BTC mined was four times the average of the previous year. With the bitcoin price crashing in 2022, underwater miners have been forced to sell in a downtrend in the market.

Hut 8 (HUT) stock has mirrored bitcoin’s performance over the past year. Source: TradingView.

HUT 8 shares closed up 3.5% at $2.38 on Friday. The stock is down nearly 70% year-on-year and 80% from its peak on November 8, 2021, when bitcoin was trading near $70,000.