In a significant move, Hut 8 Corp., a leading energy infrastructure platform, has announced the launch of American Bitcoin Corp., a majority-owned subsidiary dedicated to industrial-scale Bitcoin mining and strategic Bitcoin reserve development. This initiative is the result of a strategic partnership with Eric Trump and Donald Trump Jr., who have been instrumental in shaping the venture.
American Bitcoin emerges from the transformation of American Data Centers, Inc., a company founded by a group of investors including the Trump brothers. Following Hut 8’s contribution of its ASIC miners, the entity has been rebranded as American Bitcoin, with Hut 8 holding an 80% stake.
The new entity aims to become the world’s largest and most efficient pure-play Bitcoin miner, with ambitious plans to achieve a hashrate of over 50 exahashes per second (EH/s) while maintaining an average fleet efficiency of less than 15 joules per terahash (J/TH). Additionally, American Bitcoin is set to build a robust strategic Bitcoin reserve, further solidifying its position in the cryptocurrency landscape.
Leadership and Operations
American Bitcoin’s leadership team includes Mike Ho as Executive Chairman, Matt Prusak as CEO, and Eric Trump as Chief Strategy Officer. The company’s operations will remain integrated into Hut 8’s financial reporting under the Compute segment, with Hut 8 serving as the exclusive infrastructure and operations partner through long-term commercial agreements. These agreements are expected to generate stable revenue streams for Hut 8’s Power and Digital Infrastructure segments.
Strategic Implications
The launch of American Bitcoin marks a pivotal shift in Hut 8’s platform strategy, allowing the company to focus on more predictable and financeable segments. By carving out its mining business into a standalone entity, Hut 8 aligns each segment with its respective cost of capital, positioning American Bitcoin for significant growth and exahash expansion.
Market Reaction and Future Plans
Following the announcement, Hut 8’s shares experienced a notable surge, reflecting investor optimism about the venture’s potential. American Bitcoin plans to pursue a public listing in the future to enhance its capital accessibility, further underscoring its ambition to become a leading player in the global Bitcoin mining industry.
A conference call is scheduled for April 1, 2025, to discuss the transaction and provide additional insights into the strategic partnership and future plans for American Bitcoin.
