Key Takeaways
- American Bitcoin raised $220 million, including $10 million paid in bitcoin.
- Hut 8, its majority owner, is expanding operations with a new Dubai office focused on digital asset trading.
- American Bitcoin plans to go public through a merger with Gryphon Digital Mining, with Eric Trump joining the board.
American Bitcoin, a majority-owned subsidiary of mining firm Hut 8 and co-founded by Donald Trump Jr. and Eric Trump, has raised $220 million through a private placement.
The funds, from the issuance of 11 million shares, will be used to purchase bitcoin mining equipment and bolster the company’s bitcoin treasury.
Of note, $10 million of the shares were purchased using bitcoin rather than cash, with an average acquisition cost of $104,000 per coin.
As of June 10, American Bitcoin’s bitcoin treasury stood at 215 bitcoin, reflecting its growing reserve. A regulatory Form 8-K filing revealed the capital raise came from institutional investors.
Public listing plans
In May, it was announced that American Bitcoin plans to go public by merging with Gryphon Digital Mining, a Nasdaq-listed mining firm.
The transaction will be executed via a stock swap, and Eric Trump is set to join the board.
Post-merger, American Bitcoin shareholders will own 98% of the new entity, while Hut 8 will oversee operations.
