American Bitcoin, a majority-owned subsidiary of crypto mining company Hut 8, has raised $220 million to invest in Bitcoin mining equipment and strengthen its Bitcoin treasury.
A regulatory filing revealed that 11 million shares were issued through a private placement on Friday, generating gross proceeds of $220 million. Notably, $10 million worth of shares were purchased using Bitcoin instead of cash, with an average acquisition price of $104,000 per coin.
As of June 10, American Bitcoin held a treasury of 215 Bitcoin.
Notably, American Bitcoin has connections to the Trump family, with Donald Trump Jr. and Eric Trump listed among its co-founders. Hut 8 acquired a majority stake in the company on March 31.
Hut 8 launches cryptocurrency trading office in Dubai
Hut 8 is expanding into Dubai with the launch of a new office focused on cryptocurrency trading and digital asset accumulation, according to a Bloomberg report. The company was officially registered in the UAE on June 23 under the name Hut 8 Investment Ltd.
Hut 8 CEO Asher Genoot stated that the Dubai expansion will “enhance the precision and efficiency of Hut 8’s capital strategy.”
The UAE has emerged as a global hub for crypto startups, thanks to its supportive regulatory environment and favorable tax policies. However, firms are still required to establish clear legal strategies to ensure compliance with local laws.
A Hut 8 spokesperson clarified to Bloomberg that the new Dubai office operates independently and has no affiliation with American Bitcoin.
A publicly traded company
In May, it was announced that American Bitcoin plans to go public through a merger with Gryphon Digital Mining, a Nasdaq-listed crypto mining firm.
The merger will be executed through a stock swap, with the combined entity operating under the American Bitcoin name. Eric Trump is set to join the board following the merger.
Under the new structure, current American Bitcoin shareholders will own 98% of the merged company. Hut 8 will retain responsibility for managing the venture’s operations.
