Hut 8 Corp. (Nasdaq | TSX: HUT) announced today the launch of American Bitcoin Corp., a new majority-owned subsidiary focusing exclusively on industrial-scale Bitcoin mining and strategic Bitcoin reserve development.
The venture brings together one of North America’s leading Bitcoin miners with Eric Trump and Donald Trump Jr.
This move follows Hut 8 Corp.’s strategic contribution of substantially all of its ASIC miners to American Data Centers, Inc., a company formed by investors including the Trump brothers. The company has been renamed and relaunched as American Bitcoin, with Hut 8 Corp. maintaining an 80% ownership stake.
The Future of Hut 8 Corp. and American Bitcoin
Through long-term commercial agreements, Hut 8 Corp. will serve as American Bitcoin’s exclusive infrastructure and operations partner. It will aim to generate stable, contracted revenue streams for Hut 8 Corp.’s Power and Digital Infrastructure segments.
All Bitcoin mining operations previously reported under Hut 8 Corp.’s Compute segment will continue to operate through the American Bitcoin brand, with results consolidated within Hut 8 Corp.’s financial statements.
Additionally, the development furthers American Bitcoin’s ambitious targets, aiming to become the world’s largest and most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve.
The technical roadmap aims to achieve over 50 exahashes per second (EH/s) at an average fleet efficiency of less than 15 joules per terahash (J/TH). Eventually, the company plans to become a publicly listed company.
Value of the Venture
The company’s stated focus on “strategic Bitcoin reserve development” suggests a treasury strategy of retaining mined Bitcoin (BTC) rather than immediate liquidation, aligning with the view of Bitcoin as a long-term store of value.
Moreover, the leadership team synthesizes the Trump family’s financial knowledge and capital markets background, featuring leadership from the Trump family, with Hut 8 Corp.’s established operational knowledge.
While American Bitcoin aims to attract investors with a higher risk appetite and confidence in Bitcoin’s long-term value, this reorganization could assist Hut 8 Corp. in appealing to infrastructure investors seeking consistent profits.
READ MORE: Top 4 Crypto to Buy With the Most Bullish Crowd Sentiment
