Fidelity International Doubles Stake in Bitcoin Mining Firm Hut 8

Billion-dollar fund manager Fidelity International is betting big on rebounding fortunes for the listed bitcoin miner Hut 8.

AccessTimeIconJul 13, 2020 at 1:54 p.m. UTC
Updated Sep 14, 2021 at 9:30 a.m. UTC

Billion-dollar fund manager Fidelity International has doubled its equity investment in bitcoin mining company Hut 8, bringing its total stake to over 10%.

  • In a filing with the Ontario Securities Commission (OSC) last week, the fund manager disclosed it had acquired 4.1 million "units" in Hut 8 on June 23 in an overnight offering.
  • Each unit represents a combined offering of one common share and the option to purchase another in the next 18 months.
  • Fidelity International, a spin-off of Fidelity Investments, already held approximately 4 million common shares in Hut 8.
  • Last month's purchase, including the options, means it now controls over 10.5% of the Toronto-listed crypto mining company.
  • Hut 8 closed a C$8.3 million funding round (US$6.1 million) on June 23, with the total raise being over C$800,000 above its target.
  • Fidelity's investment may have comprised nearly three-quarters of the raise, based on the total of around 5.7 million units changing hands.
  • CoinDesk has approached Hut 8 for more information.
  • In an overnight offering, a company sells equity once the market has closed at the end-of-day price to prevent short-sellers from depressing it any further.
  • Hut 8's share price spiraled since listing on the Toronto Stock Exchange, falling from $3.35 in April 2018 to a low of $0.50 in March 2020.
  • Fidelity may be bullish about Hut 8, though, as the option for a common share is at a purchase price of $1.80 – more than double its current trading value of over $0.80 at press time.
  • The news was tweeted by CoinDesk's Matt Yamamoto earlier on Monday.

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