The company, American Bitcoin Corp., is linked to Eric Trump and Donald Trump Jr. and was formed earlier this year.
The amount the twins invested was not revealed. However, Hut 8 Corp. CEO Asher Genoot confirmed their contribution was part of a $220 million private placement that closed recently.
They were also present at a White House crypto summit in March and attended the signing of recent crypto legislation.
Genoot said the company’s structure will give it the scale and capital it needs to compete in the Bitcoin mining industry.
American Bitcoin Corp. began operations in March through a partnership with Hut 8, which holds 80% of the company.
The other 20% belongs to American Data Centers, a firm backed by Eric Trump and Donald Trump Jr. Eric is also the company’s director for strategic planning.
Based on earlier Bloomberg reporting, his stake could be valued as much as $367 million once the company makes its public debut.
The company plans to go public through an all-stock merger with Nasdaq-listed Gryphon Digital Mining Inc., trading under the ticker “ABTC.”
Just this week, shareholders of Gryphon began voting on the deal. If given the greenlight, the collaboration is expected to be finalized by early September.
American Bitcoin says its focus will be on both mining and holding Bitcoin, building a long-term reserve from its own production.
American Bitcoin’s $220 million raise signals aggressive plans for expansion. A Hut 8 filing shows around $10 million of newly issued equity was sold for Bitcoin instead of cash, reflecting the company’s goal to accumulate the asset directly.
Donald Trump Jr. has said that mining, along with holding Bitcoin, will be central to the company’s long-term strategy.
Featured image from Unsplash, chart from TradingView
