Bitcoin Mining Company Opens Yield Account to Earn 4% Return on its BTC Holdings
Hut 8 aims to increase its HODL capacity through this partnership with Genesis that will allow it to pay its expenditure in fiat.
Publicly listed Bitcoin mining company Hut 8 has opened a Bitcoin Yield Account in partnership with Genesis Global Capital.
Genesis first entered the cryptocurrency market in 2013 with its OTC BTC trading desk in the US. The full-service digital asset prime brokerage provider is now enabling the Canadian-based Bitcoin mining operation to generate BTC yield.
“Our work together is another indicator of Bitcoin’s growing value for institutional investors,” said Matt Ballensweig, VP Head of Lending.
Through this BTC Yield Account, the company will earn a 4% return on its BTC holdings, as per the announcement made this week. Hut 8 is making an initial investment of 1000 BTC with the option to increase or decrease the holdings with one day notice.
“At Hut 8, our strategy is focused on creating incremental value,” says Jaime Leverton, CEO. Through this partnership, the company aims to “yield Fiat currency from the significant BTC on our balance sheet, minimize Hut 8’s Fiat expenses and subsequently expand our ability to hold Bitcoin rather than sell.”
The company notes that this move will allow the company to leverage BTC to earn interest in fiat to pay their operational expenditure while increasing its HODL capacity.
Hut 8 Mining Corp.'s shares surged 142% in 2021, so far trading at CAD 8.46 compared to Bitcoin’s uptrend of 40% during the same period while trading above $40,000.
“Our current momentum and trajectory are just the start of what’s to come in 2021 for Hut 8, and it’s investors,” said Leverton. Hut 8 has over 3,000 mined BTC in its treasury.