Hut 8 Spins Off Bitcoin Mining Business to Launch American Bitcoin

The new American Bitcoin "aims to become the world's largest, most efficient pure-play miner while building a robust strategic bitcoin reserve"

A new American Bitcoin (Nasdaq: BITC) company is launching with the aim of becoming the world’s largest, most efficient pure-play miner while building a robust strategic bitcoin reserve, the company announced Monday.

American Bitcoin will be spun out of Canadian bitcoin mining firm Hut 8 (Nasdaq: HUT), which will retain a minority stake in the new company. The two companies plan a series of long-term commercial agreements that will generate stable, revenue streams for Hut 8's (Nasdaq: HUT) power and digital infrastructure segments.

American Bitcoin will hit the market with a bitcoin mining fleet of over 12,000 units, primarily located in North Dakota and Montana. The company will also inherit Hut 8's existing bitcoin reserve, which stands at over 7,000 coins.

American Bitcoin will initially report its results within Hut 8's financial statements.

The two companies will also enter into a series of commercial agreements for critical services, such as infrastructure maintenance and operations, power management, and bitcoin mining services. These agreements will be multi-year in nature and are designed to provide a stable stream of revenue for Hut 8.

"This transaction creates two focused yet complementary businesses, each uniquely positioned and optimized for their respective missions," said Asher Benk, CEO of Hut 8. "It evolves Hut 8 toward more predictable, financeable, lower-cost-of-capital segments within a fast-growing total addressable market."

American Bitcoin will be led by CEO Matt Prusak, former chief commercial officer for Hut 8, and chairman Mike Ho, currently chief strategy officer for Hut 8. Trump Jr. will serve as chief strategy officer.

"We're excited to bring investors into this incredible opportunity," Trump Jr. added. "The team at American Bitcoin is on the cutting edge of innovation, and they're poised to deliver exceptional value to shareholders."

American Bitcoin plans to pursue a listing on a major U.S. stock exchange in the coming months. The company will also apply to be included in relevant cryptocurrency indexes.

American Bitcoin is launching at a pivotal time for the cryptocurrency industry. Bitcoin has seen a strong recovery in 2023, and interest in cryptocurrency investing is at an all-time high.

American Bitcoin is well-positioned to capitalize on this momentum. The company has a large and efficient bitcoin mining fleet, and it is launching with a substantial bitcoin reserve.

American Bitcoin also has the benefit of being a spin-out of Hut 8, a well-established and respected company in the cryptocurrency industry.

These factors will give American Bitcoin a leg up as it launches its bid to become the world’s largest and most efficient bitcoin miner.