Bitcoin Mining Firm Backed by Trump Family Secures $220 Million
American Bitcoin Corp, a Miami-based mining operation mostly owned by Hut 8 (HUT), just pulled in $220 million from accredited investors. The details popped up in a recent SEC filing, and honestly, it’s a bit more than they were aiming for. They’d hoped to raise $200 million but ended up overshooting that—plus, they took around $10 million worth of bitcoin instead of cash. After fees, the total landed at roughly $215 million.
The company sold over 11 million Class A shares to make it happen. So, what’s the plan for all that money? Mostly to buy more bitcoin for their treasury and upgrade their mining rigs. Not the flashiest use of funds, but it makes sense if you’re in this business.
Trump Family Ties and Ownership
Here’s where it gets interesting. The Trump brothers—Eric and Donald Jr.—used to own American Data Center, which later merged with American Bitcoin Corp. Right now, Hut 8 controls about 80% of the company, while the Trumps hold onto the remaining 20%. It’s not their first dip into crypto, and it probably won’t be the last.
Back in May, American Bitcoin announced plans to go public by merging with Gryphon Digital Mining (GRYP). No word yet on how that’s progressing, but Hut 8’s shares dipped slightly in pre-market trading, down 0.86% to $18.44. Not a huge move, but enough to make you wonder if investors are hedging their bets.
Why This Matters
It’s not every day you see a mining company with political ties raising this kind of cash. The fact that they took bitcoin as part of the deal is a small but telling detail—maybe a nod to their confidence in the asset. And with Hut 8 calling most of the shots, it’s worth keeping an eye on how this plays out.
The mining industry’s been through a lot lately, with fluctuating bitcoin prices and energy costs eating into profits. Upgrading equipment could help, but it’s no guarantee. Then again, if anyone’s used to volatility, it’s probably these guys.
For now, the focus seems to be on shoring up their position before that potential public listing. Whether it pays off? Well, that’s anyone’s guess.
