American Bitcoin is a subsidiary of the cryptocurrency mining company Hut 8, which has raised $220 million to purchase Bitcoin mining equipment and enhance the company's Bitcoin (BTC) treasury reserves.
According to a regulatory filing, 11 million shares were privately issued last Friday, generating total proceeds of $220 million.
However, stocks worth $10 million were sold in Bitcoin rather than cash, with an average acquisition cost of $104,000 per Bitcoin.
Reports on June 10 indicated that American Bitcoin's Bitcoin treasury reserves amounted to 215 BTC.
Notably, the company has ties to the Trump family, as President Trump's sons Donald Trump Jr. and Eric Trump are among the founders of American Bitcoin. Hut 8 acquired a controlling stake in the company on March 31.
Meanwhile, according to Bloomberg, Hut 8 is expanding its business by opening an office in Dubai. The expansion aims to trade cryptocurrencies and accumulate digital assets.
The company was registered with the authorities on June 23 under the name Hut 8 Investment Ltd.
Hut 8 CEO Asher Genoot told Bloomberg that the company's Dubai expansion will "enhance the precision and efficiency of Hut 8's capital strategy."
In recent years, the UAE has become a hub for crypto startups due to favorable crypto regulations and tax structures.
However, crypto startups still need to develop legal strategies to avoid missteps and comply with local regulations.
A Hut 8 spokesperson told Bloomberg that the new Dubai office is not associated with American Bitcoin.
In May, it was announced that American Bitcoin would go public through a merger with Gryphon Digital Mining, a cryptocurrency mining company listed on the Nasdaq.
The transaction will be conducted through a stock swap, and the new entity will operate under the American Bitcoin brand. Eric Trump will join the board after the merger.
Under the new structure, existing shareholders of American Bitcoin will hold 98% of the newly formed entity. Hut 8 will continue to oversee the operational activities of the newly established joint venture.
Related: JPMorgan gives Circle a "reduce" rating, with a target price of $80 by the end of 2026.
Original article: “Trump-linked American Bitcoin raises $220M for mining and treasury reserves”
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