Hut 8 has joined forces with Eric Trump and Donald Trump Jr. to establish American Bitcoin, an organization dedicated solely to large-scale Bitcoin mining and strategic reserve development.
This initiative operates as a majority-owned subsidiary of Hut 8 and solidifies the Trump family’s ongoing investment in digital assets through equity involvement, operational positions, and infrastructural integration.
According to a press release issued on March 31, this venture arose from Hut 8 transferring a significant portion of its ASIC mining assets to American Data Centers Inc., which has since been renamed American Bitcoin.
Hut 8 retains an 80% ownership stake in the new company, with the remainder held by a consortium of private investors that includes Eric and Donald Trump Jr. The two sons of the current president are now actively participating in the leadership of the new mining firm, with Eric Trump taking on the role of Chief Strategy Officer.
Strategic Framework and Operational Coordination
Within this new structure, American Bitcoin’s operations will be governed by long-term commercial arrangements with Hut 8, which will continue to serve as the exclusive provider of infrastructure and managed services.
The financial results of American Bitcoin will be integrated into Hut 8’s reporting system while its mining operations will operate under a separate brand identity. This separation aligns Hut 8’s different business segments with their specific capital cost profiles, as outlined by CEO Asher Genoot, who characterized this move as part of a broader strategy aimed at optimizing capital allocation and performance across segments.
The mining initiative aims for a hash rate surpassing 50 exahashes per second, with fleet efficiency averaged below 15 joules per terahash.
Simultaneously, the company will also work on building a strategic Bitcoin reserve, reflecting a growing trend among corporations to adopt long-term Bitcoin holdings for treasury purposes and risk diversification.
Initially, American Bitcoin will be overseen by a four-member board including Genoot, Mike Ho (Executive Chairman), and technology investors Justin Mateen and Michael Broukhim, with Matt Prusak stepping in as CEO.
The Trump Family’s Expanded Digital Asset Initiative
The inception of American Bitcoin is part of a larger strategic alignment between the Trump family and the digital asset arena. It has been reported that Donald Trump Jr. and Eric Trump have consistently increased their engagement in the cryptocurrency space through advisory roles, token investments, ETFs, and strategic equity acquisitions.
Earlier this month, Dominari Holdings, a company featuring both Trump sons on its advisory board, invested $2 million in BlackRock’s iShares Bitcoin Trust. Additionally, Eric Trump has been appointed a strategic advisor to Metaplanet, recognized as Japan’s largest corporate Bitcoin holder, and has shared his own direct investments in various major digital assets, including Bitcoin, Ethereum, Solana, and Sui.
The Trump family’s growing influence in Bitcoin infrastructure resonates with Donald Trump Sr.’s political support for digital assets.
Since reclaiming the presidency, Trump has signed executive orders that support establishing a Strategic Bitcoin Reserve and exempt memecoins from being classified as securities—steps commonly seen as beneficial to the industry.
The Trump-supported World Liberty Financial initiative has successfully raised $590 million through token sales, with the family positioned to receive a substantial share of the anticipated revenue streams.
Impact on the Bitcoin Mining Sector
American Bitcoin’s ambition to become the foremost and most efficient dedicated miner introduces a new competitive dynamic to a sector that is already witnessing an influx of institutional investment.
The platform’s planned scale and focus on reserve-building echo corporate strategies embraced by companies like Marathon Digital Holdings and MicroStrategy, but will carry a unique governance structure influenced by political and branding considerations.
Hut 8’s strategic approach to using American Bitcoin as a conduit for attracting external capital for hash rate growth, while maintaining operational and infrastructure oversight, illustrates a modular strategy for mining platform development. This commercial framework may also buffer Hut 8’s balance sheet from fluctuations related to Bitcoin production, while still allowing investors targeted exposure to mining returns.
A conference call to delve into the details of the transaction is scheduled for April 1.