Private Placement Generates Major Funding
American Bitcoin, a majority-owned subsidiary of crypto mining company Hut 8, has successfully raised $220 million through a private share offering to fund Bitcoin mining equipment purchases and boost its Bitcoin treasury.
According to a regulatory filing, 11 million shares were issued during a private placement on Friday. Of the total amount, $10 million worth of shares were purchased using Bitcoin rather than cash, at an average price of $104,000 per BTC.
As of June 10, American Bitcoin reportedly held 215 BTC in its treasury.
SEC Filing Confirms Institutional Investment
The company's Form 8-K filing with the U.S. Securities and Exchange Commission confirms that the $220 million was raised from institutional investors, signaling strong confidence in the company's future outlook.
Ties to the Trump Family
American Bitcoin was co-founded by Donald Trump Jr. and Eric Trump, adding a political dimension to the company's growing media attention. Hut 8 acquired a majority stake in American Bitcoin on March 31, further integrating the company into its global operations.
Hut 8 Expands into Dubai Crypto Market
In parallel to the fundraising, Hut 8 is expanding its presence into the Middle East with the opening of a new crypto trading office in Dubai, according to Bloomberg.
The new entity, Hut 8 Investment Ltd, was officially registered on June 23. CEO Asher Genoot told Bloomberg that the Dubai expansion will help improve the company's capital strategy and efficiency.
“Dubai has become a key crypto hub thanks to its favorable regulatory and tax environment,” Genoot said. However, companies still need a clear legal compliance strategy to operate fully in the region.
A spokesperson for Hut 8 clarified that the Dubai office is unrelated to American Bitcoin.
Plans to Go Public via Merger with Gryphon
In May, it was announced that American Bitcoin will go public through a merger with Gryphon Digital Mining, a Nasdaq-listed company.
The merger will occur via a stock swap, and the newly formed entity will continue operating under the American Bitcoin brand. Notably, Eric Trump will join the board of directors following the merger.
Post-merger, American Bitcoin shareholders will retain 98% of the combined entity, while Hut 8 will maintain operational oversight of the new organization.
$220M raised via private placement-
Trump family co-founders involved
-
Dubai office launched for trading expansion
-
Upcoming public listing through merger with Gryphon
-
Hut 8 continues to lead strategic and operational control
