A crypto company related to Donald Trump’s family has managed to raise a whopping $220 million from private backers. American Bitcoin, co-founded by Eric Trump, has so far raised the money through a private placement conducted by majority shareholder Hut 8 Corp.
The company will use the funding to acquire Bitcoins and specialized mining hardware to expand operations further. The company released 11 million new shares to institutional investors in Friday’s release and has garnered huge interest in crypto financial realms.
In the overall investment deal, $10 million of it was closed in Bitcoin instead of standard dollars at an average of approximately $104,000 for each coin. There has been rising faith in digital asset pricing among institutional participants in support of American Bitcoin’s mining methodology in the long term.
Hut 8 Corp, which owns a majority stake in American Bitcoin, has also established operations in the Middle East. The company just registered its Dubai-based Hut 8 Investment Ltd. to allow it to facilitate crypto trading and contribute to its stockpile of Bitcoins.
The move indicates Dubai’s recognition as an emerging crypto startup base due to its investor-friendly tax code and regulatory environment.
As stated, Dubai’s office would not directly engage in American Bitcoin’s core business. Conversely, Dubai’s office would enable plans for capital allocation and asset acquisition to consolidate Hut 8’s international financial position.
American Bitcoin prepares merger, expands mining operations
American Bitcoin’s treasury already holds 215 Bitcoin as of June 10, indicating that the firm had been acquiring assets well before the recent fundraising.
The additional capital will enhance its mining capacity, allowing the company to expand its infrastructure and scale operations with upgraded equipment.
The firm is also preparing to go public via a merger with Gryphon Digital Mining Inc., a Nasdaq-listed crypto miner. The deal will occur through a stock swap and will retain the American Bitcoin brand after completion.
Eric Trump will reportedly serve on the new board of directors following the merger. Once finalized, the merger will leave current American Bitcoin shareholders owning 98% of the combined entity.
Hut 8 will maintain full control of day-to-day operations under the newly structured venture, signaling a consolidation of influence and expansion focus.
