American Bitcoin just secured $220 million in fresh funding to expand its mining capacity and Bitcoin reserves. The Trump-affiliated firm also accepted $10 million of the raise in Bitcoin, signaling strong belief in BTC’s future—even at a premium price.
🔹 What Happened:
American BTC, a majority-owned unit of Hut 8, raised $220 million last Friday through a private placement. The funding will go toward buying more Bitcoin mining equipment and growing the company’s BTC treasury.
Notably, $10 million of the total raise came in Bitcoin, not cash. According to the filing, the average acquisition cost for the BTC was $104,000 per coin, far above current market prices—highlighting confidence or strategy behind the scenes.
The company’s BTC treasury already held 215 BTC as of June 10. This funding will likely grow that number substantially.
The financing round was confirmed in a Form 8-K filing with the SEC, showing institutional interest in the Trump-linked firm despite ongoing market volatility.
American Btc was co-founded by Donald Trump Jr. and Eric Trump, and majority control was taken by Hut 8 on March 31.
🔍 Market or Technical Insight:
The deal stands out for two reasons:
- Bitcoin payment at premium valuation: Selling shares for BTC priced at $104K—almost 50% above market—suggests a long-term bullish view or a symbolic valuation of Bitcoin’s “true worth.”
- Strong appetite for mining exposure: Amid rising hash rates and competition, mining firms are racing to secure gear and capital. This move puts American Bitcoin in a stronger position ahead of the next Bitcoin halving cycle.
Bitcoin mining stocks have seen renewed attention following recent ETF approvals and public listings in the space. American BTC may be preparing to scale mining ahead of the next bull run by bolstering its capital.
💬 Quotes Section:
“The purpose behind the [Dubai] expansion is to trade cryptocurrencies and accumulate digital assets,” said Hut 8 CEO Asher Genoot in an interview with Bloomberg.
On the Dubai move, he added:
“[It will] enhance the precision and efficiency of Hut 8’s capital strategy.”
A spokesperson also clarified that the new Dubai office is not linked to American Bitcoin.
💼 Investor Angle:
Investors now have a new public vehicle to consider. American BTC plans to go public via a merger with Gryphon Digital Mining, a Nasdaq-listed crypto mining firm.
The deal will use a stock swap model, retaining the American BTC brand. Once complete:
- Eric Trump will sit on the board.
- American Bitcoin’s existing shareholders will own 98% of the new entity.
- Hut 8 will run operations.
This merger could help the firm access deeper capital markets and build institutional legitimacy ahead of a broader crypto rebound.
🔚 Conclusion:
American BTC is making bold bets: accepting BTC at a premium, prepping for a public listing, and gearing up for major mining growth. With institutional capital behind it and political ties in its DNA, all eyes now shift to how the firm executes in a competitive market.
Will this Trump-backed crypto venture become a serious force in the BTC mining race?
