Hut 8 Corp (NASDAQ:HUT) shares are bouncing around Thursday. The company announced the purchase of $100 million of Bitcoin (CRYPTO: BTC), bringing its total holdings across the $1 billion mark.

What Happened: Bitcoin miner Hut 8 said it purchased 990 Bitcoin for approximately $100 million. The strategic purchase brings the company's total Bitcoin holdings up to 10,096 Bitcoin with a market value of more than $1 billion.

Hut 8 said its strategic Bitcoin reserve bolsters its capital strategy by acting as a flexible asset that can optimize balance sheet performance. The company noted that Bitcoin held in reserve may be leveraged through option strategies, pledges, sales, or other strategies as appropriate.

"A key component of our treasury strategy, the strategic Bitcoin reserve supports a flywheel effect that aligns our capital and operating strategies to accelerate value creation across the business. We believe deeply in our operating business and that building a strategic Bitcoin reserve will fortify our financial position as we pursue large-scale growth initiatives across power and digital infrastructure," said Asher Genoot, CEO of Hut 8.

"Additionally, as we scale operations and extend our cost advantage in Bitcoin production, we anticipate that the flywheel effect will enable us to grow our holdings organically at a significant discount to market prices, strengthening the yield of our reserve strategy."

Bitcoin mining stocks sold off on Wednesday alongside broader markets as risk assets faced selling pressure in the wake of a hawkish cut from the Federal Reserve.

The Fed on Wednesday cut rates by 0.25%, but signaled that it will be "cautious" about the pace of further cuts.

Bitcoin pulled back from its recent rally on Wednesday alongside broader markets. Bitcoin was down about 2.85% over a 24-hour period, hovering around $100,800 at the time of publication, per Benzinga Pro.

HUT Price Action: Hut 8 shares were up more than 4% in early trading before pulling back and turning negative for the session. The stock was down 3.21% at $25.29 at the time of publication Thursday, according to Benzinga Pro.

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