American Bitcoin, a majority-owned subsidiary of Hut 8, has secured $220 million to acquire Bitcoin mining equipment and enhance its Bitcoin holdings.
On Friday, 11 million shares were issued through a private placement, resulting in total funds raised of $220 million, as detailed in regulatory documents.
Interestingly, $10 million of the stock was traded for Bitcoin instead of cash, with an average purchase price of around $104,000 per coin.
As of June 10th, reports indicated that the US Bitcoin Treasury Department’s Bitcoin holdings stood at 215 coins.
There’s also a connection to the Trump family; notably, Donald Trump Jr. and Eric Trump, sons of former President Trump, are founders of American Bitcoin. Hut 8 acquired a majority interest in the firm on March 31.
Hut 8 Expands to Dubai
In another move, Hut 8 is branching out into Dubai, where it has opened an office. This expansion aims to facilitate cryptocurrency trading and build digital asset reserves, as reported by Bloomberg.
The company’s registration with local authorities occurred on June 23 under Hut 8 Investment Ltd.
Hut 8’s CEO, Asher Genoot, mentioned that this Dubai venture “will enhance the precision and effectiveness of Hut 8’s capital strategy.”
The UAE has become increasingly appealing to crypto startups, thanks to its favorable regulations and tax environment.
Nonetheless, these startups must carefully navigate legal frameworks to avoid setbacks and comply with regional laws.
A Hut 8 spokesperson clarified to Bloomberg that the new office in Dubai operates independently of American Bitcoin.
Public Listing Plans
In May, it was revealed that American Bitcoin plans to go public by merging with Gryphon Digital Mining, a company traded on NASDAQ.
This merger will be executed through stock swaps with new entities branded as American Bitcoin. Following the merger, Eric Trump is set to join the board of directors.
Post-merger, current Bitcoin shareholders in the US will control 98% of the newly created entity, while Hut 8 will manage operational responsibilities for the combined business.
