Canadian listed mining company Hut 8 has sold 6% stake, raising $8.3 million

According to BlockBeats, Canadian listed mining company Hut 8 said last week that it had sold 6% of its equity to investors, raising a total of US$8.3 million, about US$800,000 higher than its initial financing target of US$7.5 million.

Investors purchased a total of 5.7 million units at $1.45 per unit. Each unit consists of one common share of Hut 8 and one equity certificate, giving investors the option to purchase the company's common stock at an exercise price of $1.85 within the next 18 months.

The funds will be used to purchase new equipment. Ryleigh Ebron, an external spokesperson for Hut 8, said the company was able to increase its mining capacity by more than one-fifth to 1,150 PH/s. Once installed, the company will account for nearly 1% of the total Bitcoin site computing power, which currently stands at about 115,200 PH/s. Ebron added: "This financing is expected to strengthen Hut 8's cash flow and balance sheet."

As Coindesk previously reported, the company lost $116.6 million in the fourth quarter of 2019 alone. The company achieved a meager profit of just over $2 million in 2019.

Original address: https://www.coindesk.com/bitcoin-miner-hut-8-equity-round