Hut 8 Corp., one of the top mining corporations, will partner with Eric Trump to create a new pure-play mining company. American Bitcoin will focus on pure mining while building a robust Bitcoin (BTC) reserve.
Hut 8 will create a new pure mining company in partnership with Eric Trump. The American Bitcoin company will focus on mining new Bitcoin (BTC) and building up a reserve. Hut 8 will continue to spread its activity to infrastructure creation, securing energy sources, as well as building mining and computation centers.
American Bitcoin Corp. will be majority-owned as a subsidiary of Hut 8. The company will have enough hashrate for industrial-scale mining, allowing it to build a strategic Bitcoin reserve. The new business entity will be headed by Mike Ho as Executive Chairman, joined by CEO Matt Prusak, and Eric Trump as Chief Strategy Officer.
Hut 8 also holds a majority interest in American Data Centers, Inc., a company formed by a group of investors, including Eric Trump and Donald Trump Jr. The formation of American Bitcoin Corp. will use all the resources and holder structure of American Data Centers, Inc. The new mining company will use the existing fleet of ASIC miners from all Hut 8 operations. The deal included a swap for all mining equipment in exchange for an 80% share in the new company.
American Bitcoin Corp. plans to max out Bitcoin mining
American Bitcoin will replace the Bitcoin mining operations previously reported under Hut 8’s compute segment. The mining operations will use the new brand, while initially being part of the Hut 8 financial statement.
American Bitcoin Corp. will also use Hut 8 as its infrastructure provider and operations partner, through a series of long-term commercial agreements. This will ensure Hut 8 will continue to have contractual revenue streams from its power and digital infrastructure segments. Hut 8 will provide the mining locations and will offer day-to-day services for all mining centers.
American Bitcoin Corp. will aim for a leading position in mining, already capitalizing on the well-developed US-based mining infrastructure.
“It is a great honor to partner with Hut 8, a recognized leader in the Bitcoin space, as we launch American Bitcoin,” said Eric Trump, Co-founder of American Bitcoin. “By combining Hut 8’s proven operational excellence in data centers with our shared passion for Bitcoin and decentralized finance, we are poised to strengthen our foundation and drive significant future growth,” he said.
Eric Trump’s involvement with Bitcoin mining follows months of focusing on the Ethereum ecosystem, in connection with the World Liberty Financial fund.
Asher Genoot, the CEO of Hut 8, stated the new standalone entity will be able to raise its own capital and achieve better cost of fundraising.
Bitcoin hashrate goes vertical
Despite the highly competitive nature of Bitcoin mining, the network’s hashrate has grown exponentially to new all-time highs. The network’s hashrate is up to 856 EH/s, up more than 10X in the past five years.
The presence of corporate miners with robust infrastructure means there has not been a miner capitulation. Miners continue to add new hashrate online, despite the record difficulty. This has led to a capitulation of small miners, but companies with well-established data centers and cheap electricity could survive.
American Bitcoin Corp. will extend the trend of “Made in America” crypto. Over 30% of the network’s newly produced BTC goes into the hands of US corporate miners. The expansion of mining and data centers has not stopped despite BTC falling toward $82,000 in the past week. Well-established miners continue to produce new coins at a reasonable cost basis, retaining some of the newly mined assets.
Miners are also one of the main carriers of treasuries, with a reserve of 1.9M BTC from direct operations. In total, BTC treasuries for 172 tracked entities now hold 3.11M BTC.
Of that hashrate, Hut 8 carries around 8.9 EH/s, becoming one of the largest single miners. The company holds a reserve of 6.09K BTC as of March 31, after sending 2,000 BTC to a new address.
Following the news of the American Bitcoin Corp. creation, the Hut 8 stock still traded with no significant change. HUT traded near a six-month low of $11.72, also tracking the general performance of BTC.
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