Hut 8 Joins Forces with Trump-Backed Firm to Establish American Bitcoin Mining Giant
In a strategic move set to reshape the cryptocurrency mining landscape, publicly traded Hut 8 has announced a groundbreaking partnership with American Data Centers, a firm backed by investors including Eric Trump and Donald Trump Jr. This collaboration will launch a new bitcoin mining entity, American Bitcoin, further cementing the Trump family’s growing involvement in the digital asset sector.
Key Details of the Merger
Under the terms of the cashless merger, Hut 8 will retain an 80% ownership stake in American Bitcoin while also managing its operations through a shared services agreement. The Trump-backed firm will hold the remaining 20%, according to a company press release issued Monday.
Hut 8 plans to deploy over 60,000 ASIC mining machines to power the new standalone bitcoin mining business. Following the announcement, shares of the Florida-based company saw a more than 6% increase in pre-market trading. Despite this, Hut 8’s stock remains down 46% year-to-date as the industry grapples with financial pressures triggered by April’s bitcoin halving, which reduced mining rewards by 50%.
Leadership and Strategic Vision
American Bitcoin’s leadership team includes industry veterans and high-profile figures. Mike Ho will take on the role of executive chairman, while Matt Prusak steps in as CEO. Eric Trump, serving as chief strategy officer, will work alongside a board that includes Justin Mateen, Michael Broukhim, and Hut 8 CEO Asher Genoot.
Speaking on the move, Genoot highlighted the strategic benefits of spinning off Hut 8’s mining business into a separate entity. “By carving out our mining business into a standalone entity, which will raise its own capital, we align each segment of the business with its respective cost of capital,” he stated.
Trump Family’s Expanding Crypto Influence
This partnership is another step in the Trump family’s deepening footprint in the cryptocurrency sector. Donald Trump Jr. reinforced the family’s commitment to Bitcoin, stating, “From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses. Simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity.”
Beyond Bitcoin mining, the Trump family has also been involved in decentralized finance through their backing of World Liberty Financial, a protocol aiming to launch a stablecoin amid evolving U.S. regulatory discussions on cryptocurrency. Additionally, two Trump-affiliated memecoins—TRUMP and MELANIA—have seen significant volatility, plunging more than 85% from their peaks after their January launch.