Trump-Linked American Bitcoin Raises $220M for Mining and BTC Treasury
Trump-Linked American Bitcoin Secures $220M for Mining Expansion as Hut 8 Eyes UAE, While Satoshi-Era Miners Hold Amid ATH Prices.
Key Takeaway:
- Trump-linked American Bitcoin leverages high-profile connections to secure $220M for mining equipment and treasury growth.
- Hut 8 launches Dubai trading arm to leverage the UAE’s crypto-friendly regulatory environment.
- “Satoshi-era” miners resist selling despite ATH prices, signaling confidence in Bitcoin’s future value.
A regulatory filing revealed that Trump-linked American Bitcoin, a subsidiary of Hut 8, has raised $220 million in a private placement to fund Bitcoin mining equipment and strengthen its digital asset treasury.
The firm issued 11 million new shares on June 27, securing gross proceeds of $220 million. Investors paid $10 million of that amount in Bitcoin at an average acquisition cost of $104,000 per coin.
As of June 10, American Bitcoin held 215 BTC.
Who’s Backing American Bitcoin’s $220M Mining Push?
Hut 8 acquired its majority stake in the venture on March 31, exchanging existing mining equipment for 80% equity and retaining operational oversight of the mining sites in Alberta, New York, and Texas.
The private placement featured participation from institutional investors, including founders Donald Trump Jr. and Eric Trump, who launched American Bitcoin prior to Hut 8’s takeover. Eric Trump is now set to join the board of the newly merged public entity.
In May, American Bitcoin revealed plans to merge with Nasdaq-listed Gryphon Digital Mining through a stock swap. Following the merger, existing American Bitcoin shareholders will own approximately 98% of the public company, which will trade under the American Bitcoin brand.
Simultaneously, Hut 8 is pursuing international growth, launching Hut 8 Investment Ltd. in Dubai last month. Though operationally separate from American Bitcoin, the UAE entity will enhance Hut 8’s capital strategy through direct market access in the region.
This $220 million funding positions American Bitcoin among the best-funded U.S. mining ventures, combining high-profile political ties with an aggressive growth strategy as it prepares for its imminent public debut.
How Crypto Miners Are Reinventing Themselves Amid Crisis
U.S. miners are grappling with rising costs and shrinking margins after transaction fees plunged to just 0.96% of block rewards—their lowest since January 2022—and the hash price fell nearly 50% following the April 2024 Bitcoin halving.
Trump imposed a 20% China-specific import duty on mining rigs, briefly pressuring equipment prices, though the administration has since paused the levies.
As profitability waned, leading Chinese manufacturers Bitmain, Canaan, and MicroBT established production lines in the U.S. to sidestep tariffs and stabilize their supply chains.
Additionally, miners are offsetting revenue drops by repurposing excess capacity, with some mining operators diversifying into AI and high-performance computing for data center services.
Core Scientific’s 590 MW AI-power deal and Hive Digital’s pivot to graphics rendering show how the industry adapts. These shifts, from U.S. manufacturing footholds to strategic holdings, demonstrate that miners are playing the long game.
Positioning themselves for sustainable growth once network conditions and regulatory landscapes improve.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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