Hut 8 Corp. HUT Shares Trade Higher on American Bitcoin Corp. Spinoff

The company has unveiled American Bitcoin Corp., a new subsidiary dedicated to large-scale Bitcoin mining and strategic reserve accumulation.

Shares of Hut 8 Corp. (NASDAQ:HUT), an energy infrastructure company that provides solutions for large-scale computing needs, including Bitcoin mining and high-performance computing, are trading higher in premarket after the company launched American Bitcoin Corp., a new subsidiary focused on large-scale Bitcoin mining and strategic reserve accumulation.

This move follows Hut 8's contribution of the majority of its ASIC miners in exchange for a significant stake in a venture supported by Eric Trump and Donald Trump Jr., which was later renamed American Bitcoin.

The goal of the newly launched company is to become the world's most efficient dedicated Bitcoin miner. To facilitate this transition, all Bitcoin mining activities previously managed by Hut 8's Compute segment will now operate under the American Bitcoin banner.

Initially, the financial performance of American Bitcoin will be integrated into Hut 8's consolidated reports.

Moreover, Hut 8 will continue as the sole infrastructure and operations partner, establishing long-term commercial agreements designed to ensure consistent revenue generation.

"From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses," said Donald Trump Jr.

"But simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity. We’re excited to bring investors into that equation through a platform engineered to execute on this thesis and deliver real, tangible participation in Bitcoin’s growth."

American Bitcoin aims to achieve a computing capacity exceeding 50 exahashes per second (EH/s) while keeping its fleet efficiency below 15 joules per terahash (J/TH), and it intends to become a publicly listed company.

The company's leadership team will include Mike Ho as Executive Chairman, Matt Prusak as CEO, and Eric Trump as Chief Strategy Officer. The Board of Directors will comprise Ho, Asher Genoot, Justin Mateen, and Michael Broukhim.

Under long-term agreements, Hut 8 will provide colocation services, operational management, and other support functions for American Bitcoin. The parent company will oversee daily operations through a shared services contract.

American Bitcoin is poised to hit the ground running with a substantial portion of its hasrate already secured through existing, deployed miners. The company will continue to expand its operations and optimize its fleet efficiency to maintain its position at the forefront of the Bitcoin mining industry.

The launch of American Bitcoin marks a significant shift in strategy for Hut 8 as it seeks to capitalize on the growing opportunity in the digital asset space.

The company's decision to contribute its miners and technology to the venture highlights its commitment to fostering innovation and collaboration within the industry.

American Bitcoin's focus on large-scale Bitcoin mining and strategic reserve accumulation aligns with the company's overarching goal of building a sustainable and valuable digital asset franchise.

The company's leadership team brings together experience in technology, finance, and cryptocurrency, setting the stage for the company's success.

With its existing infrastructure and operational capabilities, Hut 8 is well-equipped to provide ongoing support and services to American Bitcoin.

The launch of the new subsidiary is expected to contribute to the company's revenue growth and expand its footprint in the digital asset ecosystem.

Price Action: HUT shares traded higher by 7.08% at $12.55 in premarket at last check Monday.