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Thursday, Apr 24, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Hut 8 Corp and Trump family collaborate on new Bitcoin mining company
Hut 8 Corp and Trump family collaborate on new Bitcoin mining company
A Hut 8 Mining site. Image via Hut 8.

Bitcoin

Hut 8 Corp and Trump family collaborate on new Bitcoin mining company

The Trump family’s growing involvement in the crypto landscape highlights the industry’s push toward mainstream acceptance

American-based Bitcoin miner Hut 8 Corp (NASDAQ: HUT) (TSE: HUT) and President Donald Trump’s son, Donald Jr and Eric Trump, have launched a bitcoin mining collaboration called American Bitcoin.

Hut 8 contributed most of its ASIC miners to American Data Centers. in exchange for 80 per cent of the company. It will now complete the transaction that led to its renaming and relaunch as American Bitcoin.

The Trump family’s growing involvement in the crypto landscape highlights the industry’s push toward mainstream acceptance. Furthermore, President Trump has pledged to be the “crypto president” and promote its widespread use in America.

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

“But simply buying Bitcoin is only half the story. Mining it on favourable economics opens an even bigger opportunity.”

Going forward, Hut 8 will keep all Bitcoin mining operations previously reported under its Compute segment within the same segment, but they will operate under the American Bitcoin brand.

Initially, the company will consolidate American Bitcoin’s results within its financial statements for reporting purposes. Additionally, through a series of long-term commercial agreements, Hut 8 will act as American Bitcoin’s exclusive infrastructure and operations partner, generating stable, contracted revenue streams in its Power and Digital Infrastructure segments.

Read more: DeFi Technologies joins MVIS index and VanEck Digital ETF

Read more: Gamestop goes all-in on crypto and Bitcoin investments

American Bitcoin works into Hut 8’s platform strategy

CEO Matt Prusak will lead the company, while Eric Trump will serve as the chief strategy officer. American Bitcoin also plans to go public in the long run to expand its access to capital. By carving out its mining business, Hut 8 will also sharpen its focus on lower-volatility energy and digital infrastructure. Hut 8 will remain American Bitcoin’s exclusive infrastructure and operating partner.

American Bitcoin’s initial leadership team will include Mike Ho as Executive Chairman, Matt Prusak as Chief Executive Officer, and Eric Trump as Chief Strategy Officer.

The company’s Board of Directors will also initially feature four members: Mike Ho, Asher Genoot, Justin Mateen, and Michael Broukhim.

After the company is created, Hut 8 will subsequently provide ASIC colocation and managed services to American Bitcoin. It will also handle American Bitcoin’s day-to-day operations through a shared services agreement.

Asher Genoot, CEO of Hut 8, described the launch of American Bitcoin as a milestone in the company’s platform strategy. He explained that spinning off the mining business allows each segment to align with its respective cost structure. This move creates two specialized yet complementary businesses. The first is Hut 8, which will focus on more stable and financeable operations with lower capital costs. The second is American Bitcoin, which will operate as a dedicated mining platform geared toward exahash growth and Bitcoin production.

 

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