American Bitcoin, supported by Trump’s sons, raises $220 million for expanding its hashrate

American Bitcoin, a subsidiary of Hut 8 that has the backing of Donald Trump Jr. and Eric Trump, recently completed a private equity placement, raising more than $220 million. This financing involved the sale of 11 million shares of Class A common stock to accredited investors under Rule 506 of Regulation D, surpassing the initial $200 million target due to oversubscriptions. The total amount raised could reach $250 million, with $10 million worth of shares settled in Bitcoin at a valuation of $104,000 per BTC.

American Bitcoin was established as a separate entity after Hut 8 merged with U.S. Bitcoin Corp. It now operates miners housed at Hut 8-owned sites, with Hut 8 focusing on its role as an infrastructure provider for Bitcoin mining and high-performance computing. The company’s goal is to expand its self-mining capacity to 25 EH/s, positioning itself as one of the leading global Bitcoin miners. The involvement of the Trump sons has lent a politically charged dimension to American Bitcoin’s growth.

The recent capital raise coincides with Hut 8’s activation of new facilities to support American Bitcoin’s expansion. The Vega site, a 205-megawatt facility, has come online and will initially host 15 EH/s of hashrate for Bitmain. As part of the hosting agreement, Hut 8 and American Bitcoin have the option to purchase the hosted machines from Bitmain at a fixed price within six months. These developments represent a significant step in American Bitcoin’s planned capacity increase.

Proceeds from the financing, amounting to around $215 million after deducting fees and expenses, will be used to fund the company’s strategic initiatives, including hardware acquisitions and the accumulation of more Bitcoin. This infusion of capital will support American Bitcoin’s growth and help solidify its position in the competitive Bitcoin mining sector. Subscribe to Miner Weekly newsletter for regular updates on the mining industry.