Bitcoin mining company Hut 8, linked to the Trump family, has expanded operations to Dubai and raised $220 million to purchase additional Bitcoin and mining infrastructure.
Expansion to Dubai and connectivity with the UAE
Hut 8 registered an office at the Dubai International Financial Centre #Dubai (DIFC) last week. This new office will have a team focused on trading and digital asset strategies.
Omar Elassar, CEO of the Middle East unit of Animoca Brands, stated that this move reflects the role of the UAE as a supplemental financial partner for the US, while also indicating that the US is leading in innovation but is slower in regulatory implementation, causing capital and developers to move abroad.
#Hut8 is the primary owner of American Bitcoin, a mining venture co-founded by Eric Trump (who was also the Chief Strategy Officer). His brother, Donald Jr., is also a shareholder. American Bitcoin recently announced plans to go public through a merger with Gryphon Digital Mining.
Trump and the UAE trend
Although President #DonaldTrump and his sons have promoted the idea of making the US a global cryptocurrency innovation hub, their business interests are increasingly shifting towards the UAE. Dubai is particularly attractive to crypto companies due to low taxes and a relatively flexible legal framework, although this has also raised concerns about money laundering and financial crime.
Aqua 1 Foundation, a UAE-based fund, recently invested $100 million in tokens from World Liberty Financial, another crypto venture backed by Trump. Additionally, USD1, a stablecoin launched by World Liberty Financial, is being used to support MGX's $2 billion investment in the Binance exchange.
The Trump family has long had ties with the UAE, including operating a golf club and a skyscraper currently under construction there. The Trump International Hotel and Tower in Dubai will allow the purchase of real estate with cryptocurrency, Eric Trump said in April.
Jakob Kronbichler, CEO and co-founder of Clearpool and Ozean, stated that Dubai's legal framework provides "clear guidance" and "builds confidence to implement more complex strategies" for large-scale crypto asset management companies.