- Bitcoin miner and high-performance computing provider Hut 8 (TSX:HUT) is launching a new Bitcoin mining company alongside a group of investors that includes Donald Trump Jr. and Eric Trump, the latter to serve as co-founder and chief strategy officer
- The company, know American Bitcoin, aims to grow into the world’s largest Bitcoin miner while accumulating a strategic reserve
- Hut 8’s platform spans 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada
- Hut 8 stock has added 15.87 per cent year-over-year and 353.60 per cent since 2020
Bitcoin miner and high-performance computing provider Hut 8 (TSX:HUT) is launching a new Bitcoin mining company alongside a group of investors that includes Donald Trump Jr. and Eric Trump, the latter to serve as co-founder and chief strategy officer.
Hut 8 will receive 80 per cent of the company, going by American Bitcoin, in exchange for “substantially all” of its ASIC miners under its high-performance computing segment, according to Monday’s new release.
American Bitcoin’s mission, the release continues, is to become “the world’s largest, most efficient pure-play miner while building a robust strategic Bitcoin reserve,” though whether or not this pertains to the U.S. government’s previously announced cryptocurrency reserve remains unclear.
Hut 8 will benefit from stable revenue generated through long-term commercial agreements as American Bitcoin’s exclusive infrastructure and operations partner.
American Bitcoin intends to go public, offering investors exposure to a plan to reach over 50 EH/s in hashing capacity at an average fleet efficiency of <15 J/TH. Hashing, for the crypto uninitiated, refers to the process of validating transactions on the Bitcoin blockchain, which miners perform in exchange for payments in the cryptocurrency.
Investors current and prospective can attend a webcast on the transaction on Tuesday, April 1 at 8:30 am ET.
Leadership insights
“It is a great honor to partner with Hut 8, a recognized leader in the Bitcoin space, as we launch American Bitcoin,” Eric Trump, co-founder and chief strategy officer of American Bitcoin, said in a statement. “By combining Hut 8’s proven operational excellence in data centers with our shared passion for Bitcoin and decentralized finance, we are poised to strengthen our foundation and drive significant future growth.”
“From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses,” commented 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.”
“The launch of American Bitcoin marks a pivotal evolution in our platform strategy,” added Asher Genoot, Hut 8’s chief executive officer. “By carving out our mining business into a standalone entity, which will raise its own capital, we align each segment of the business with its respective cost of capital. The transaction creates two focused yet complementary businesses, each purpose-built for its respective mandate. It evolves Hut 8 towards more predictable, financeable, lower-cost-of-capital segments and establishes American Bitcoin as a pure-play mining platform built for exahash growth, Bitcoin production and operating leverage.”
About Hut 8
Hut 8 is a Bitcoin miner and high-performance computing stock. The company’s platform spans 1,020 megawatts of energy capacity under management across 15 sites in the United States and Canada.
Hut 8 stock (TSX:HUT) is up by 1.31 per cent trading at C$17.01 per share as of 9.41 am ET. The stock has added 15.87 per cent year-over-year and 353.60 per cent since 2020.
Join the discussion: Find out what everybody’s saying about this Bitcoin mining stock on the Hut 8 Corp. Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image, generated by AI: Adobe Stock)
