Quick take:
American Bitcoin plans to use the funds to buy more Bitcoin and crypto mining equipment.
The company sold around $10 million in shares for Bitcoin instead of cash, at an average BTC price of $104,000.
American Bitcoin plans to list on Nasdaq via a SPAC with Gryphon Digital Mining in the second half of the year.
American Bitcoin, a bitcoin mining firm backed by Eric Trump and Donald Trump Jr., has raised $220 million in a private placement to sell around 11 million shares of its common stock, according to an SEC filing from Hut 8, which holds a majority stake in the company.
The company plans to use the capital to buy more Bitcoin and crypto mining equipment. According to the filing, American Bitcoin sold $10 million in shares for Bitcoin instead of cash, at an average BTC price of $104,000.
“The Company intends to use the net proceeds to fund its strategic and Bitcoin accumulation goals, which may include, but are not limited to, the purchase of Bitcoin and/or miners,” the filing reads, adding that the company made net proceeds of $215 million after deducting transaction costs.
Launched at the end of March, American Bitcoin was formed following Hut 8’s merger with American Data Centres, which counts Eric Trump and Donald Trump Jr. among its investors. It further expands the Trump family’s crypto involvement beyond merely acquiring Bitcoin.
American Bitcoin plans to go public in the second half of the year via a special purpose acquisition company (SPAC) IPO on Nasdaq with Gryphon Digital Mining.
Trump’s crypto company has invested across multiple sectors in crypto, including stablecoins, DeFi, and a BTC treasury backed by $2.5 million in funding.
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The post Trump-Backed American Bitcoin Eyes More Bitcoin Purchase in New $220M Private Placement appeared first on NFTgators .
