Hut 8 (HUT) and Donald Trump's Sons Launch New Bitcoin Mining Firm Called American Bitcoin

Bitcoin mining platform Hut 8 (HUT) and Donald Trump's sons have joined forces to launch a new firm called American Bitcoin focused exclusively on "industrial-scale Bitcoin mining and strategic Bitcoin reserve development."

Key Takeaways:

* Cryptocurrency mining platform Hut 8 (TSX: HUT) is launching a new firm called American Bitcoin with the sons of former President Donald Trump to focus on “industrial-scale Bitcoin mining and strategic Bitcoin reserve development.”

* As part of a larger transaction, Hut 8 will be taking a majority stake in American Data Centers from the investors which includes Eric Trump and Donald Trump Jr.

* American Data Centers will be renamed American Bitcoin and the deal will give 80% of the new firm to Hut 8 and the owners of American Data Centers the remaining 20%.

* The aim is for American Bitcoin to “become the world’s largest, most efficient pure-play miner while building a robust strategic Bitcoin reserve.”

* “We are excited to be joining forces with the Trump family, renowned for their keen business acumen and vision, to propel American Bitcoin to new heights of excellence in the rapidly evolving cryptocurrency landscape,” said Jian (Jane) Huang, CEO of Hut 8.

* American Data Centers is being sold for $63 million in cash and shares of Hut 8 to the investors of the firm which includes the Trump family.

* The deal will also see about $50 million of the fundraising total used to repay an instalment loan from an affiliate of an existing lender.

* “We are proud to be combining forces with Hut 8, a leader in the Bitcoin mining industry, to propel American Bitcoin to even greater successes in this exciting new chapter.

American Data Centers sold to investors for $63M in cash and shares of Hut 8 (TSX:HUT).

Investors of American Data Centers includes the Trump family who will be investing in the new company, American Bitcoin, which will be majority owned by Hut 8.

What's the deal?

The deal, which will see American Data Centers (which is being renamed American Bitcoin) go to investors in a transaction valued at $63 million, will be paid for in cash and shares of Hut 8.

American Data Centers is a privately held company that owns and operates a 270-megawatt (MW) data center facility in northern Virginia.

The firm’s investors include members of the Trump family, who will be taking an investment in the new company, to be called American Bitcoin.

American Bitcoin will be majority owned by Hut 8, which will hold an 80% interest, while the owners of American Data Centers will own the remaining 20% interest.

The transaction will also see about $50 million of the fundraising total used to repay an instalment loan from an affiliate of an existing lender.

The new company will also assume an existing credit facility with a total outstanding principal amount of about $164 million.

American Bitcoin will launch with an elite leadership team boasting deep industry experience and a shared commitment to excellence.

Joining the new company as Chief Strategy Officer is Eric Trump, a recognized leader in the realm of finance and investment.

Donald Trump Jr., an accomplished entrepreneur and investor, will be contributing his expertise in business development as a key investor.

Both executives will be bringing their experience from family-owned business, the Trump Organization, to the new venture.

American Bitcoin will be focused on industrial-scale Bitcoin mining and strategic Bitcoin reserve development.

The goal is to become the world’s largest, most efficient pure-play miner while building a robust strategic Bitcoin reserve.

“We are excited to be joining forces with the Trump family, renowned for their keen business acumen and vision, to propel American Bitcoin to new heights of excellence in the rapidly evolving cryptocurrency landscape,” said Jian (Jane) Huang, CEO of Hut 8.

“This strategic partnership marks a significant milestone in our journey to establishing America's preeminent Bitcoin mining firm. With their unmatched experience and vision, the Trump family will be invaluable assets to American Bitcoin as we embark on this exciting new chapter.”

Huang added: “This transaction is a testament to the agility and resilience of Hut 8. Despite the challenging macroeconomic environment, we are executing seamlessly on our strategic plan to expand our operations and create long-term value for our shareholders.”

Donald Trump Jr. commented: “Our family has been a believer in Bitcoin from the start—both personally and through our businesses. But owning Bitcoin is only half the story.

“Mining it on favorable economics—which is what we are focused on with American Bitcoin—opens an even bigger opportunity. We are looking forward to working with the team at Hut 8 to build something great.”

And Eric Trump added: “We are pleased to be joining forces with Hut 8, a leader in the Bitcoin mining industry, to propel American Bitcoin to even greater successes in this exciting new chapter.

“As American Bitcoin enters this next phase of growth, we are grateful for the partnership of Triple Point Capital, who have been instrumental in supporting American Data Centers' journey to date.”

Shares of Hut 8, which is listed on